Report Detail Summary

The Economy in Perspective: Inflation is Not a Problem

July 25, 2017

In a recent well written article in the Wall Street Journal by Paul Hannon and David Harrison, the headline read as follows: “Weak Inflation Vexes Central Banks.” To many of us who follow the economy, the market, and the Fed, the title says it all. So does the data. Figure 1 shows that the U.S. inflation rate has been below the 2% target rate much of the time period. Other inflation indicators are also producing similar signals.

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