The Federal Open Market Committee's (FOMC) overarching focus right now is to bring inflation back down to our 2 percent goal

 26 August 2022

https://englundmacro.blogspot.com/2022/08/chair-of-us-central-bank-uses-jackson.html


Fed Chair Jerome Powell said the bank “is strongly resolved to bring inflation down to 2%,

and we will keep at it until the job is done.” 

https://englundmacro.blogspot.com/2022/09/the-great-bond-bubble-is-poof-gone-in.html


Inflation may improve at times. The point is we aren’t going back to the halcyon days of 1% and 2% inflation for years 

John Mauldin 23 September 2022

https://englundmacro.blogspot.com/2022/09/i-suppose-its-possible-to-control.html


To bring price increases down to 2%, we may need to tolerate unemployment of 6.5% for two years.

Jason Furman WSJ 7 September 2022 

https://englundmacro.blogspot.com/2022/09/scariest-economics-paper-of-2022.html


Fed appear solely focused on getting core inflation back down to 2% 

without acknowledging how much economic pain it will cause.

John Authers Bloomberg 28 september 2022

https://www.bloomberg.com/opinion/articles/2022-09-28/the-fed-is-pushing-the-economy-into-recession-and-needs-to-reconsider-inflation


The 2 per cent inflation target  came up repeatedly throughout the conference, 

with economists suggesting that it may need to be adapted to fit a more fractured global economy.

Fed in 2020 announced it would target inflation at a 2 per cent average over time, in order to make up for past periods of undershooting the target.

Many economists advocated for a 3 per cent inflation target. 

FT 28 August 2022

https://englundmacro.blogspot.com/2022/08/rooting-out-high-inflation-will-become.html


Fed’s Bullard Says Credibility of Inflation-Targeting Is at Risk

Price pressures threaten the credibility of the central bank’s inflation target. 

Federal Reserve Bank of St. Louis President James Bullard 

Bloomberg September 27th, 2022





Om arbetslösheten inte stiger väsentligt, hur faller då inflationen tillbaka till Fed:s 2%-mål?
Wolf och Dudley




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