The April CPI numbers were in line with the expectations of market participants. This inflation news seemingly confirmed to market participants that underlying inflation is in the process of falling — after three consecutive months of unwelcome upside surprises. Moreover, other news on the economy was viewed as suggesting that growth has slowed, the labor market has … Continue reading Back On The Soft Landing Path?
Inflation Remains Stubbornly High
February's CPI data disappointed market participants, who were hoping to see more evidence that inflation was gliding down to the Fed's 2 percent target amid continued output growth and a good labor market. That is, market participants were looking for further evidence that a soft landing was in sight. Instead, the twelve-month increase in the … Continue reading Inflation Remains Stubbornly High
Further Disinflation?
Economic growth over the second half of 2023 was brisk. Real GDP expanded at a 4 percent annual rate over the second half of 2023, up from a 2 percent rate in the first half and only ¾ percent over all of 2022. Moreover, initial claims for unemployment insurance thus far in January are not … Continue reading Further Disinflation?
Thomas D. Simpson, PH.D. 