I read an article today about the PCE Index. I am a beginner in trying to understand the difference in supply side inflation and demand side inflation. The demand is still great as people are maxing out credit cards and spending savings. The supply is hurt by a labor shortage and higher production costs. Is an annual rate of 4.5% for an adjusted PCE Index livable? How do you think it will affect inflation? My guess as a novice is that it is not good news. Thanks Akash for the information.
I continue to believe that the US economy and consumer has a tolerance for an inflation level higher than the Feds 2% target. The question is if the Fed will understand and accept that.
That pesky transitional inflation just seems to keep lingering on for some strange reason.
Well summarized as per usual! Great stuff.
I read an article today about the PCE Index. I am a beginner in trying to understand the difference in supply side inflation and demand side inflation. The demand is still great as people are maxing out credit cards and spending savings. The supply is hurt by a labor shortage and higher production costs. Is an annual rate of 4.5% for an adjusted PCE Index livable? How do you think it will affect inflation? My guess as a novice is that it is not good news. Thanks Akash for the information.
I continue to believe that the US economy and consumer has a tolerance for an inflation level higher than the Feds 2% target. The question is if the Fed will understand and accept that.