Does “Headline” Inflation Tell the Whole Story?
As the U.S. economic recovery moves into its later stages, inflation has emerged at a surprisingly slow and inconsistent rate, befuddling investors who have watched the expansion set the stage for anticipated price and wage growth. Only recently has data emerged indicating that pricing pressures have approached, and in some circumstances exceeded, target levels from monetary policymakers.
Inflation is a focal point of the Fed’s evaluation of economic health when determining future monetary policy. However, the absence of inflation in the recovery has apparently stumped even the Fed, which incorporated a variety of innovativ
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