PILOT SPIN

Spin Zone => Spin Zone => Topic started by: Anthony on August 27, 2020, 07:13:50 AM

Title: Fed announces 2% Inflation Rate target
Post by: Anthony on August 27, 2020, 07:13:50 AM
Quote
It is now the Fed’s view that “a robust job market can be sustained without causing an outbreak in inflation.”

The Fed’s strategy retains 2% annual growth of inflation as a target but the Fed said it “seeks to achieve inflation that averages 2% over time.”

“Following periods when inflation has been running persistently below 2%, appropriate monetary policy will likely aim to achieve inflation moderately above 2% for some time,” the new policy says.

Global oversupply has created deflationary forces that have bedeviled foreign central banks as the traditional tool of cutting interest rates to spur employment no longer is effective. Too low inflation saps energy from economies. Foreign central banks have pushed their benchmark interest rates into negative territory to try to spur demand.

Looks like global over supply due to lack of demand and low energy prices are part of the lower inflation.  I wonder what REAL inflation is actually? 

https://www.marketwatch.com/story/fed-unanimously-adopts-new-strategy-widely-seen-as-leading-to-easier-policy-2020-08-27?mod=home-page
Title: Re: Fed announces 2% Inflation Rate target
Post by: President-Elect Bob Noel on August 27, 2020, 09:16:11 AM
Looks like global over supply due to lack of demand and low energy prices are part of the lower inflation.  I wonder what REAL inflation is actually? 

https://www.marketwatch.com/story/fed-unanimously-adopts-new-strategy-widely-seen-as-leading-to-easier-policy-2020-08-27?mod=home-page

um, why shouldn't low energy prices and lack of demand figure into the calculation of inflation?

Title: Re: Fed announces 2% Inflation Rate target
Post by: EppyGA - White Christian Domestic Terrorist on August 27, 2020, 10:21:13 AM
Current low gas prices will mean little to no raise for SS recipients.