Today Ben Bernanke, governor of the US Federal Reserve, will once again stand before Congress for one more round of H-H Testimony. He better be careful about his messaging, which has been quite poor of late. The inflation hors d’oeuvre was served yesterday. It was a ‘cold plate’ and very unexciting.
The charts show the BLS CPI inflation, both headline and core and their flexible and sticky counterparts from the Atlanta Fed Inflation Project. There’s simply ‘no inflation to be seen since the ‘recovery’ took-off four years ago.
The next chart showing the short medium and long run inflation expectations from the Cleveland Fed do not signal inflation expectations becoming unmoored, despite quite a few ‘inflation paranoids’ in the financial media.
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