Capical Econ Challenges Cavalier Fed Attitude, Sees H2 Inflation

Will a cavalier Fed attitude regarding inflation miss forthcoming inflation in the second half of 2016?

When the U.S. Federal Reserve met this past March, they noted little change in their economic projections, which one might expect to lead to a little changed response function. This isn’t the case, a Capital Economics research piece notes in a report that notes a “cavalier attitude” among Fed officials towards inflation.

Capital Economics research sees inflation and a cavalier Fed attitude

The Fed is willing to let inflation run above its target more so than before, Capital Economics analyst Paul Ashworth writes under the slightly hyperbolic headline “Fed...