BREAKDOWN: What's Behind the Fed's New Push to Promote Inflation?
Why the Fed’s strategy on inflation is changing and why the definition used by America’s central bank may be hurting regular people.
Today on the Brief:
- EU leaders agree on $2 billion stimulus package
- LinkedIn job cuts show weakness in the professional sector
- Has DeFi jumped the shark?
Our main discussion: The Fed’s changing inflation strategy
University of Oregon professor and Bloomberg columnist Tim Duy recently penned a piece called “The Fed Is Setting the Stage for a Major Policy Change” arguing that we’re likely to see more inflation, promoted by the Fed.
In this episode, NLW breaks down:
- Why the Fed is turning away from its traditional inflation forecasting method
- Why the Fed is likely to let real inflation hit 2% before doing anything
- Why some are calling the move “simply asinine”
- Why some think the Fed is full of hot air and has no power to actually create inflation
- Why the Fed is trapped by its definition of inflation