Shrinking Inflation Expectations

From Richard (“Inspector Clouseau”) Fisher:

Dallas Fed President Richard Fisher said Friday on CNBC he opposed the Federal Open Market Committee‘s recent decision on employment thresholds and that he was extremely concerned that it would become increasingly difficult to exit the Fed’s accomodative monetary policy.

“We are at risk of what I call a ‘Hotel California’ monetary policy, referring to the Eagles’ song, where we can check out any time we want from this program, but we can never leave” due to an engorged balance sheet, he said.

I looked at the Cleveland Fed today´s release of their measure of inflation expectations. This is what I found.

Shrinking Expectations

Just imagine those are representations of short-run supply curves!

Seems that a lot of spending growth can be conjured before the 2.5% inflation threshold is reached.


One thought on “Shrinking Inflation Expectations

  1. Fischer should move to Japan. Where he recently visited, btw, to warn them about the perils of….you guessed it, inflation.

    If a central banker goed to Japan, and warns of the perils of inflation…should that fellow really be a central banker?

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