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Where Things Stand Now With Inflation and the Fed
Odd Lots
Are You Optimistic?
Tim Koshgari: I think Loretta Mester actually set up a decent way of thinking about it in these like broad strokes. The idea is that once the Fed gets to a rate that has, as Tim says, sustained downward pressure on the labor market,. They can basically tee off this handoff from below trend growth to slowing wage growth to slowing inflation. And they can only really know which level is doing that in real time. But broadly speaking, it's going to be very much informed by the data.
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