Fed’s Collins: Absent new tariff and oil shocks, there is reason to believe inflation will ease

  • Recent PCE report didn’t change modal outlook that mon pol is restrictive and will lead to gradual disinflation
  • Portfolio management had an outsized influence on headline inflation, with market-based prices more in line with Fed’s target
  • Recent inflation data mixed with headline figure stronger but promising signs in the details
  • Recent increase in bond yields not a sign inflation expectations are increasing

This is what she’s been saying for awhile.

This article was written by Adam Button at investinglive.com.

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