Discover and read the best of Twitter Threads about #AverageInflationTargeting

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It was 73 degrees and sunny in #JacksonHole, Wyoming, today; a perfect day for all those who were there….
Yet, there were no #monetary policy officials present at the traditional location of the @KansasCityFed’s late-summer #economic policy symposium, since they were conducting a “virtual symposium.”
That symposium provided #ChairPowell the opportunity to lay out a reasonably sunny perspective on the U.S. #economy, but also one that was not out of the woods yet, in terms of Covid variant risk and a maximum #employment target still to be achieved.
Read 10 tweets
Today’s robust #inflation data surprised in its strength and will likely persist in the short-run, and in some areas the intermediate-term, although we think that long-term the @federalreserve is largely correct in identifying real #economy price gains as mostly #transitory.
Much of today’s #inflation is due to reopening factors and supply constraints, but as #SupplyChains normalize from Covid-related shocks and #inventories rebuild, we expect much of the recent inflation will be transitory, with some stickiness in pricing pressure longer-run. Image
That may be especially the case where #inventory levels are harder to build up quickly and continued #demand from higher levels of #growth persist for at least the next year, or so.
Read 9 tweets
With the dust from Powell’s speech at the Jackson Hole symposium on Thu settling, the fundamentals are re-exerting themselves. As we said, a switch to average inflation targeting will drive the price of hard assets higher and USD will weaken over time.

medium.com/global-macro-a…
If you are unfamiliar with what I’m going to say next, it means you haven’t been paying attention. Stick to the path. The gift that keeps on giving will keep on giving.

#GlobalMacroAtaGlance #MacroEconomics #TR2min #ForexTrading #GlobalMacroAnalysis #AverageInflationTargeting
Read 3 tweets

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