The Importance of Inflation

Inflation is going to be stickier than I think many economists are forecasting because of all sorts of demographic, geopolitical climate reasons. Even there are many inflationary forces that are going to make it almost impossible to get down to 2%. We're not seeing 2% inflation anytime soon. This does mean higher interest rates than many are factoring and also. But you know what, Maggie, that's actually OK. The Fed will somehow manage to change its target without changing its target due to credibility in play here.