Yellen´s “Sunday Sermon”: A broken record

On Sunday, October 15, Yellen, among other central bank chiefs, gave a talk to a group of international bankers. Her usual story regarding low inflation was present: Inflation readings over the past several months have been surprisingly soft, however, and the 12-month change in core PCE prices has fallen to 1.3 percent. The recent softness seems to have been exaggerated by what look like one-off reductions in some categories of prices, especially a large decline in quality-adjusted prices for wireless telephone services. My best guess is that these soft readings will not persist, and with the ongoing strengthening of labor…

This content is for Free Trial and Subscriber members only.
Log In Register

Comments are closed, but trackbacks and pingbacks are open.