Forex Market News Today
  • Home
  • News
  • LiveHourly
  • Markets
  • Stock
  • Business
  • Economy
  • World
  • Politics
  • Energy
  • exchange
  • companies
No Result
View All Result
Forex Market News Today
Home Economy

Biden and the Fed Leave 1970s Inflation Fears Behind

3 weeks ago
in Economy
3 min read
Biden and the Fed Leave 1970s Inflation Fears Behind
Share on FacebookShare on Twitter


Economists have struggled to understand the phenomenon, but they largely think inflation is being held down by a cocktail of aging demographics, changing consumer expectations and limited pricing power in a globalized world where consumers can search online to compare prices.

Market-based inflation expectation measures are hovering right around 2 percent, and consumer inflation outlooks have dipped slightly over the past decade, though one gauge ticked up in a recent reading. If buyers don’t expect higher prices, companies may find themselves unable to raise them, so whatever people anticipate can drive reality.

It’s also hard to see where a big and sustained spike in prices would come from, analysts said.

Airfares, apparel prices and hotel prices all took a hit in 2020 during the depths of the pandemic, and they’re likely to jump sharply as the economy reopens and consumers with money in their pockets take vacations and refurbish their wardrobes, said Alan Detmeister, a former inflation expert at the Fed who now works at the bank UBS.

Yet the price of goods that experienced a jump as workers shifted to home offices — from the category that includes laptop computers to the one that tracks cars — could fall back, weighing down overall gains. Categories that matter a lot to the overall index, like rent and health insurance, are both subdued and slow-moving.

In any case, a temporary bounce-back in prices is not the same as an inflationary process in which price gains continue month after month.

Even if prices do temporarily bounce, the Fed has pledged to be patient in the way it thinks about inflation. In years past — including under Ms. Yellen’s watch — it lifted interest rates before price gains had really picked up to head off potential overheating. The central bank’s new framework, adopted last year, calls for policymakers to aim for a period of above-2 percent inflation so that it hits its goal on average over time.

And besides stabilizing prices, Congress also tasks the Fed with trying to achieve maximum employment. Charles Evans, the president of the Federal Reserve Bank of Chicago, said earlier this month that $1.9 trillion in government spending would have the potential to help the Fed hit its inflation and job market goals faster.

“I’m hard-pressed to see the size of this leading to overheating,” he said.



Go to the news source: Biden and the Fed Leave 1970s Inflation Fears Behind

Tags: 1970sBidenfearsFEDInflationleave
Previous Post

W.T.O. Officially Selects Okonjo-Iweala as Its Director-General

Next Post

Russia: Oil Markets Have Rebalanced

Related Posts

Electricity Sales to End Users Dropped Below 2008 Level: What it Says about the …
Economy

Electricity Sales to End Users Dropped Below 2008 Level: What it Says about the …

by Forex News
March 8, 2021
0

In 2020, by source, coal collapsed to record low, natural gas dominated, wind and solar surged, while hydro and...

Read more
Yellen says Biden COVID bill to fuel ‘very strong’ U.S. recovery
Economy

Yellen says Biden COVID bill to fuel ‘very strong’ U.S. recovery

by Forex News
March 8, 2021
0

By David Lawder, Susan HeaveyFILE PHOTO: Federal Reserve Chairman Janet Yellen speaks during a news conference after a two-day...

Read more
Expect social unrest if wealth inequality continues: Hayman Capital’s Kyle Bass …
Economy

Expect social unrest if wealth inequality continues: Hayman Capital’s Kyle Bass …

by Forex News
March 8, 2021
0

Expect social unrest if wealth inequality continues: Hayman Capital's Kyle Bass CNBC Television Go to the news source:...

Read more
Live Foreign Currency Exchange Rates
Economy

US economy looks set for Covid recovery – but we need inclusive growth | US econ…

by Forex News
March 8, 2021
0

Joe Biden’s announcement that the US will have enough Covid-19 vaccines for every American by the end of May...

Read more
Senate Passes Stimulus Bill, China Slumps, Attack on Saudi
Economy

Senate Passes Stimulus Bill, China Slumps, Attack on Saudi

by Forex News
March 8, 2021
0

© Reuters. By Geoffrey Smith  Investing.com -- The U.S.'s $1.9 trillion stimulus package is set to be formally approved...

Read more
Expected recovery is supported by BoE rates and QE
Economy

Expected recovery is supported by BoE rates and QE

by Forex News
March 8, 2021
0

"The uncertainty is expected to continue to reduce investment other things equal, weighing on the capital stock and productivity growth,"  Bank...

Read more
Crude Oil Price Update – Upside Momentum Strong; Closing Price Reversal Top Will…
Economy

Crude Oil Price Update – Upside Momentum Strong; Closing Price Reversal Top Will…

by Forex News
March 8, 2021
0

U.S. West Texas Intermediate crude oil futures soared over 3% on Friday, falling short of its contract high reached...

Read more
PH Central Bank Governor: ‘Elevated’ inflation does not require monetary respons…
Economy

PH Central Bank Governor: ‘Elevated’ inflation does not require monetary respons…

by Forex News
March 8, 2021
0

PH Central Bank Governor: 'Elevated' inflation does not require monetary response| ANC ANC 24/7 Go to the news...

Read more
Shares falter as tech skids, yields and oil ring inflation alarm By Reuters
Economy

Shares falter as tech skids, yields and oil ring inflation alarm By Reuters

by Forex News
March 8, 2021
0

© Reuters. FILE PHOTO: A man wearing a protective face mask talks on his mobile phone in front of...

Read more
Increase in price for some petroleum products
Economy

Increase in price for some petroleum products

by Forex News
March 8, 2021
0

Consumers will be paying more for some petroleum products, from midnight Sunday, March 7. Gasoline will retail at $3.57...

Read more
Next Post
Russia: Oil Markets Have Rebalanced

Russia: Oil Markets Have Rebalanced

Subscribe
Login
Notify of
guest
guest
0 Comments
Inline Feedbacks
View all comments

Latest Forex News

Targeting Dubai? Saudi Arabia’s ultimatum to pull HQ offices to kingdom

Targeting Dubai? Saudi Arabia’s ultimatum to pull HQ offices to kingdom

3 weeks ago
Forex reserves down by USD 6.24 bn to USD 583.945 bn

Forex reserves down by USD 6.24 bn to USD 583.945 bn

3 weeks ago
$300 bonus unemployment checks: More states sending payments. What you should kn…

$300 bonus unemployment checks: More states sending payments. What you should kn…

2 months ago
The New Green Energy Giants Challenging Exxon and BP

The New Green Energy Giants Challenging Exxon and BP

3 months ago

Today Market News

Live Foreign Currency Exchange Rates
World

Brazil: Lula has convictions quashed, leaving him free to challenge Bolsonaro | …

March 8, 2021
Electricity Sales to End Users Dropped Below 2008 Level: What it Says about the …
Economy

Electricity Sales to End Users Dropped Below 2008 Level: What it Says about the …

March 8, 2021
Yellen says Biden COVID bill to fuel ‘very strong’ U.S. recovery
Economy

Yellen says Biden COVID bill to fuel ‘very strong’ U.S. recovery

March 8, 2021
Gold Outlook Bullish Headed into First Quarter, with Caveats
Live

Gold Price Drops as Treasury Yields Rise, Will XAU/USD Fall Further?

March 8, 2021
Expect social unrest if wealth inequality continues: Hayman Capital’s Kyle Bass …
Economy

Expect social unrest if wealth inequality continues: Hayman Capital’s Kyle Bass …

March 8, 2021
Chinese airline suspends pilot, flight attendant for allegedly brawling over bat…
World

Chinese airline suspends pilot, flight attendant for allegedly brawling over bat…

March 8, 2021
  • Contact Us
  • Terms of Use
  • Privacy Policy
  • DMCA
  • CCPA

© 2020 Siteofforex.com

No Result
View All Result
  • Home
  • News
  • Live
  • Markets
  • Stock
  • Business
  • Economy
  • World
  • Politics
  • Energy
  • exchange
  • companies

© 2020 Siteofforex.com

wpDiscuz