Surveillance: Bear Market with Wilson
Bloomberg Surveillance
00:00
The Fed's Plan for a Higher Inflation Target
The Fed and most other major central banks have defined price stability as the metric target around 2%. Academic literature shows that actually, until inflation gets above 4%, most people don't really notice it. So I'm not sure they don't notice inflation at least in terms of they hit to their actual standards of living. Some are calling for a higher inflation target in the US in particular, somewhere around 3%. The academic debate may be more of an academic debate. Are we anywhere near sentient inflation where we're just comfortable with our inflation rate? We might get a pause in June, but I wouldn't take a pause to mean that the Fed is done.
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