Posted 4/11/2024, 4:04:48 PM
Fed Debates Shifting Inflation Target Amid Persistent Price Pressures
- Debate continues about potential Fed cuts to inflation targets amid influx of data
- Shelter inflation showing little sign of easing up; running at double pre-COVID trend
- 2% inflation target may no longer be right; came about in 1990s pre-China's WTO entry
- Moving to more on-shoring and domestic production is structurally inflationary
- Expect only 50bps of cuts this year and 100bps through 2025; inflation dragon not slain