Fed Starts to Wonder If Cornerstone Inflation Model Still Works
- Majority of FOMC participants still committed to gradual hikes
- Conviction in inflation forecasts is beginning to fray
Fed Grapples With Uncertainty About Inflation
This article is for subscribers only.
Federal Reserve officials are looking under the hood of their most basic inflation models and starting to ask if something is wrong.
Minutes from the July 25-26 Federal Open Market Committee meeting showed a revealing debate over why the economy isn’t producing more inflation in a time of easy financial conditions, tight labor markets and solid economic growth.