“The dog didn´t bark”

On Wednesday, November 16, I was away all day and completely forgot it was inflation (CPI) day! At night, checking my e-mail I was reminded of the fact because there was the regular mail from the Cleveland Fed with the latest “inflation expectations curve”, which is released on the same day.

And no “dog barked” about it simply because there was nothing to “bark” about. Even the usual suspects did not show any sign of life!

Below, for your visual information is the inflation and inflation expectations pictures.  So yes, the Fed thinks it needs help from the fiscal policy people because current inflation (core) is dead on “target”, although 1-10 year expectations are well below “target”, and the policy rate is at the ZLB (and unemployment is “way up in the clouds”).

2 thoughts on ““The dog didn´t bark”

  1. Marcus, Are you plotting the annualized core and headline rates by month or are you plotting the monthly year on year change? Are your inflation expectations taken from the Cleveland Fed’s calculation?

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