The Fed's Role in Inflation

The podcast discusses how the Fed's actions have influenced core inflation. The speaker analyzes a super core inflation metric, which excludes volatile sectors and lags. This measure has fallen to 0.5% annualized over the past three months, the lowest it has been since 1990. The speaker questions whether the Fed can take credit for this decline in inflation or if other factors were at play, such as the financial markets. The timeline suggests that the economy engineered its own soft landing after an overheated 2021, triggering a contraction, allowing for disinflation.