U.S. journalists don’t get it.
The Fed’s target is 2 percent inflation. We’re not there yet.
Journalists are like a bunch of kids in the back seat. “Are we there yet? Are we there yet?”
Switzerland currently has 1 percent inflation. They’re there.
ALSO Switzerland is running a small surplus. We’re running a deficit 6 god damn percent of GDP.
With the unsustainable deficit that we have, it is very difficult for the central bank to achieve price stability (defined as 2 percent CPI inflation). Maybe even impossible.
2% inflation is roughly 2% too high.
Is the inflation “good news” just data from a month extrapolated to an annual rate or based on data from the last 12 months?
What’s the forward looking projection?