Fed Economist Says Final Leg of Inflation Fight Will Be Easier Than Expected
- No compelling support for more difficult ‘last mile,’ he says
- Atlanta Fed bank economist warns of a possible policy error
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While some economists worry the US inflation fight may become more difficult as the Federal Reserve gets closer to its 2% target, a new central bank research paper argues that’s not the case.
“It is difficult to conclude that the last mile of disinflation is more arduous than the rest,” Federal Reserve Bank of Atlanta economist David Rapach wrote in a paper released Tuesday. “In terms of policy, this implies that the Fed need not view the final phase of the disinflation process as fundamentally different from the other phases.”