Why the Federal Reserve’s strategy on inflation is changing and why the definition used by America’s central bank may be hurting regular people.
Today on the Brief:
- EU leaders agree on $2 billion stimulus package
- LinkedIn job cuts show weakness in the professional sector
- Has DeFi jumped the shark?
Our main discussion: The Fed’s changing inflation strategy
University of Oregon professor and Bloomberg columnist Tim Duy recently penned a piece called “The Fed Is Setting the Stage for a Major Policy Change” arguing that we’re likely to see more inflation, promoted by the Fed.
In this episode, NLW breaks down:
- Why the Fed is turning away from its traditional inflation forecasting method
- Why the Fed is likely to let real inflation hit 2% before doing anything
- Why some are calling the move “simply asinine”
- Why some think the Fed is full of hot air and has no power to actually create inflation
- Why the Fed is trapped by its definition of inflation