Outside the Box: The Fed can chill: Inflation isn’t coming back this year

Inflation has been low for quite a while, around 1.5% by the Federal Reserve’s preferred measure and steadily below the Fed’s stated goal of 2%. However, once again, various pundits are citing mounting inflation pressures, stoked by Trump administration policies they expect to immediately boost economic growth.

Some Fed policy makers are on the record expecting U.S. inflation to accelerate in 2018. Financial market analysts generally agree.

Of course, many of the same folks predicted rising inflation in previous years as well. It didn’t happen then. We believe it is unlikely to happen now.

We see more slack remaining in the U.S.

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