Fed’s Musalem: Without Further Policy Restraint, More Likely Inflation Will Remain Substantially Above 2% Target 18-Months From Now
Likely To Need Further Hikes To Tame Inflation That Is Both Demand- And Supply-Driven - Labour Market Stable Around Full Employment, Doesn t See It As A Source Of Inflation Pressure - Commodity Shock Is More Than Just Oil, Shock Includes Base Metals Like Copper - Better For 'Earlier And Incremental' Rate Hikes Rather Than 'Later And Larger' - Even When Stripping Out Supply-Related Factors, Inflation Remains 'Too High' - Business Contacts Plan On Price Increases 'Closer To 3%'
Likely To Need Further Hikes To Tame Inflation That Is Both Demand- And Supply-Driven - Labour Market Stable Around Full Employment, Doesn t See It As A Source Of Inflation Pressure - Commodity Shock Is More Than Just Oil, Shock Includes Base Metals Like Copper - Better For 'Earlier And Incremental' Rate Hikes Rather Than 'Later And Larger' - Even When Stripping Out Supply-Related Factors, Inflation Remains 'Too High' - Business Contacts Plan On Price Increases 'Closer To 3%'