U.S.: Time For The Fed To Take Out Some More Insurance?

The Fed must decide between demand worries and structural benefits

What causes inflation? In every business cycle, the answer is the same: excess demand financed by accommodative credit conditions that strains the economy's ability to satisfy it. However, the problem for forecasters, especially those who have to make monetary policy, is that all cycles are different. So, inflation is often a moving target, which makes preemptive efforts to contain it particularly challenging.

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