Where is This 2% Inflation The Fed and Market Bet on?


Fed’s Kashkar speaking in Minnesota:

Today’s CPI report was another reason to wait rather than hiking
We’re not exactly sure why inflation has been low
Data has supported my perspective on monetary policy
Fed has the luxury to see what actually happens
Why do we need to cool the economy down?

Inflation hasn’t increased with tightening labor market
There more be more slack than we think
I don’t see evidence inflation will take off
It’s unlikely a stock market correction would lead to crisis