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He Foresaw Inflation. Here’s What He Expects Next. Feat. Lord Mervyn King

Capitalisn't

CHAPTER

Is the Fed Thinking Differently?

Jay Powell has abandoned forward guidance and gone to meeting by meeting decisions. He doesn't want to be known as the Arthur Burns of the Fed, who thought about trying to bring inflation down but didn't do it enough. The problem is that having allowed inflation to rise and lost credibility, the split of a given path of nominal demand over the next two to three years may be much more in terms of inflation than real growth.

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