Inflation Has Moderated, the Fed Stands Ready

Inflation has started to moderate, Ben Bernanke tells the JEC.

He pointed to a market measure showing that inflation expectations have come down, signaling investors expect more economic weakness ahead.

That is putting it mildly. According to the Cleveland Fed, 10-year expected inflation has fallen to 1.37%. In ordinary times, the Fed aims to keep inflation between 2% and 2.5%. Even if you are excessively cautious, and believe that a spell of higher-than-target inflation is never a good idea, expected inflation is now too low and needs to be increased. Bernanke says the Fed stands ready to act. I keep wondering, what is it waiting for?

Presented by

Why Principals Matter

Nadia Lopez didn't think anybody cared about her middle school. Then Humans of New York told her story to the Internet—and everything changed.

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register with Disqus.

Please note that The Atlantic's account system is separate from our commenting system. To log in or register with The Atlantic, use the Sign In button at the top of every page.

blog comments powered by Disqus

Video

A History of Contraception

In the 16th century, men used linen condoms laced shut with ribbons.

Video

'A Music That Has No End'

In Spain, a flamenco guitarist hustles to make a modest living.

Video

What Fifty Shades Left Out

A straightforward guide to BDSM

More in Business

Just In