2 min
UBS On-Air: Paul Donovan Daily Audio 'The problems with Powell' UBS On-Air: Market Moves
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- Business
Federal Reserve Chair Powell is not an economist. Not everyone can be an economist, but central bank heads probably should be economists. Yesterday, Powell stated reaching 2% inflation was taking longer than expected. The US PCE deflator is 2.5% y/y, the core PCE deflator is 2.8% y/y, and harmonized inflation is 2.4% y/y. Imprecise data means most economists regard a 2% inflation target as meaning a 1%-to-3% range. The fictional owners’ equivalent rent may be taking longer than expected to reach 2%, but that is not the same thing as inflation.
Federal Reserve Chair Powell is not an economist. Not everyone can be an economist, but central bank heads probably should be economists. Yesterday, Powell stated reaching 2% inflation was taking longer than expected. The US PCE deflator is 2.5% y/y, the core PCE deflator is 2.8% y/y, and harmonized inflation is 2.4% y/y. Imprecise data means most economists regard a 2% inflation target as meaning a 1%-to-3% range. The fictional owners’ equivalent rent may be taking longer than expected to reach 2%, but that is not the same thing as inflation.
2 min