“See no evil”

Jeffrey Lacker plays the role: See no evil_1

Federal Reserve Bank of Richmond President Jeffrey Lacker, known as a “hawk” for his emphasis on the risk of runaway prices, said Thursday he sees no sign of inflation expectations moving away from the central bank’s 2% target.

“Thankfully, there are no signs that business and consumer expectations for future inflation have drifted away from 2 percent,” he added. “Of course, monetary policy must ensure that we never see such a drift in expectations materialize, for if it does, it will have been too late.”

Note that “moving away” could mean in any direction, but being “blindsided” he can´t see it´s been lower than target for some time in the shorter (5yr) horizon and is beginning to drift below target in the longer (10yr) horizon!

See no evil_2

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