Inflation Is Still Too High

"Det är vårt tydliga och ständiga mål, den ledstjärna vi styr efter. Och om vi lyckas med penningpolitiken, vilket vi kommer att göra, kommer inflationsuppgången under de senaste fem åren att höra till historien", sade Fed-chefen Kevin Warsh. 

DI 14 juli 2026

https://www.di.se/live/nye-fed-chefen-inte-ok-med-hog-inflation/

Price level and inflation rate

https://englundmacro.blogspot.com/2024/11/price-level-and-inflation-rate.html

Inflation Is Still Too High — and Here to Stay

Inflation is still too high, with the average rate over the prior three months at 3.8%, almost double the Federal Reserve’s target of 2%.

The inflation rate may be the new normal, with some economists learning that inflation of more than 2.5% is much worse than thought, and the Fed may not be able to return inflation to its target.

It is easy to forget, but it wasn’t that long ago that policy makers wanted 3% to 4% inflation. For much of the 20th century, that level would have been considered a policy success. Then, for most of the 2010s, the inflation rate was below target, near zero, and it seemed too low.

Back then, many policy makers and economists thought 4% inflation was better than 2% because it allowed monetary policy more room to be effective. 

Allison Schrager Bloomberg 14 July 2026

https://www.bloomberg.com/opinion/articles/2026-07-14/us-inflation-report-expect-higher-for-longer

Policymakers could leave their 2% target in place formally, but be all right with never quite getting there.

And then some years down the line, they could adopt a higher target.

https://englundmacro.blogspot.com/2025/10/inflationsmalet-overges-i-tysthet.html