The Fed's Price Stability Mandate and Inflation Continue to Decelerate

Inflation is likely to continue deteriorating and decelerating, but it's just not decelerating fast enough. If you just look at the data point we got today in the ISM services release, we saw the prices component, a slow 6.1 points to 59.5. And that minus 6.1 delta is the sharpest deceleration we've seen since May of 2017. So inflation is decelerating. It's just decelerating to levels that are extremely inconsistent with the fed's 2% mandate, price stability mandate. We're talking about the Federal Reserve that has set up the pause even as inflation continues to decelerate.