Inflation Has Moderated, the Fed Stands Ready

More

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?

Jump to comments
Presented by

Clive Crook is a senior editor of The Atlantic and a columnist for Bloomberg View. He was the Washington columnist for the Financial Times, and before that worked at The Economist for more than 20 years, including 11 years as deputy editor. Crook writes about the intersection of politics and economics. More

Crook writes about the intersection of politics and economics.

Get Today's Top Stories in Your Inbox (preview)

'Stop Telling Women to Smile'

An artist's campaign to end sexual harassment on the streets of NYC.


Elsewhere on the web

Join the Discussion

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

Video

Where Time Comes From

The clocks that coordinate your cellphone, GPS, and more

Video

Computer Vision Syndrome and You

Save your eyes. Take breaks.

Video

What Happens in 60 Seconds

Quantifying human activity around the world

Writers

Up
Down

More in Business

Just In