Elmer Fed? US PCE Price Growth Hits 5.2%, Highest Since Mid-1983 (Taylor Rule Suggests Target Rate of 13.35%) – Confounded Interest
February 26, 2022
And this doesn’t include the inflation in prices caused by the Russian invasion of Ukraine. Yet.
US Personal Consumption Expenditures (PCE) price index rose by 5.2% in January, the fastest rate since mid-1983.
With CPI inflation at 7.5% YoY, the Taylor Rule suggests a Fed Funds target rate of 13.35%, higher than the current rate of 0.25%. Overstimulated much??
Let’s see if The Fed actually goes hunting inflation.
Let’s see if inflation makes The Fed dance!
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