Catching Up Quickly

November 8, 2024 When asked about their level of confidence consumers often highlight inflation as a major concern.  When inflation began to rise in mid-2020  Fed Chair Powell told us not to worry because the run-up in prices would be temporary.  That led us to...

Raising the Speed Limit

October 25, 2024 On Thursday we will get our first look at third quarter GDP growth.  The Atlanta Fed’s GDPNow forecast suggests it will be 3.4%.   But we know from the employment report that hours worked in the quarter edged up by just 0.2% which suggests that GDP...

Fed Policy is Misguided

October 11, 2014 The Federal Reserve is pleased that inflation is closing in on its 2.0% target. But what exactly is inflation? It is the change in prices in the past twelve months. While prices in the past year have risen slowly, they skyrocketed in prior years. As a...