Sentences with phrase «inflation feeds back»

Not exact matches

Inflation probably won't rise back to the Fed's 2 percent goal until 2018, he said, and GDP probably contracted last quarter.

Doing so, he has said, would help boost inflation, now well below the Fed's 2 - percent target, back to healthier levels.

Back in December, the Fed said it would hold the target short - term rate steady at least until unemployment had dropped to 6.5 %, assuming inflation didn't rise past 2.5 %.

Yellen added that «as oil price declines and other transitory factors dissipate» the Fed expects inflation to move back towards its 2 % target.

On inflation running below the Fed's target, Yellen said that though inflation is running below its target, a «small undershoot» of the Fed's employment target should facilitate inflation moving back towards that target.

The Fed statement said: «The Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen some further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term.»

But if inflation were to ramp from here unexpectedly and we started to see a pop in inflation here, around the world, in Europe, Japan, for example, really start to see some true signs of real inflation coming back, that might force the Fed to get more aggressive than what the market is currently looking for, not priced in.

Yet even Fed policymakers who have raised the alarm on inflation backed the central bank's decision on Wednesday to let its $ 600 billion bond - buying program run to its scheduled end in June.

The Fed usually assigns an inflation target, which currently stands at 2 %, and adjusts interest rates, prints money, or buys back debt to reach such a target.

Bernanke shoots back that he's got the best inflation track record among Fed chairman since World War II.

Bernanke, the widely criticized chairman of the Federal Reserve, shot back Sunday evening at the inflation hawks who claim quantitative easing — the Fed's plan to buy $ 600 billion of Treasury debt over eight months, in hopes of boosting asset prices and nudging a sluggish economy forward — will send inflation soaring and destroy the dollar.

Economic data has also come back on the radar of investors who are contending with the potential for inflation to hit the Fed's 2 % target range, raising the risk of the central bank leaning toward a more aggressive hiking trajectory.

Inflation is creeping back to the Fed's 2 - percent target.

MarketWatch: So the doves on the Fed, who think the central bank should wait until inflation gets back to 2 %, have lost?

The Trump administration pushes back on such grim forecasts, saying it thinks inflation will remain low - around the Fed's 2 percent - for years to come, even with all the extra stimulus from the tax cuts and higher government spending.

For now, however, the Fed appears willing to look through the soft inflation data, sticking with the view that inflation will move back towards 2 %, supported by a tight labor market and a Philips curve model for inflation.

Sky - high interest rates and two recessions occurred before the Fed could finally break the back of accelerating inflation.

As for inflation in general, Fed Vice Chairman Stanley Fischer has said that there is «good reason» to believe that inflation will move back up to the Fed's annual target of 2 % as the US economy's untapped capacity gets used up and as the effect of the big dip in oil prices in the second half of 2014 wears off.

As usual, the Fed chair hedged her bets somewhat, saying she wanted to see further improvement in labor market conditions and greater confidence that inflation would move back up to 2 % in the next few years, but, based on current trends, it seems that small, incremental hikes in base interest rates are looming on the horizon.

Given the already stretched resources, inflation could come back to haunt both investors and the Fed.

Because the Fed and other factors have kept the economy in a state of relatively low inflation, the current secular bear has ground its way back to the reality of the red zone.

As the economy or the Fed reverses the adverse inflation - rate trend back toward price stability, P / E will trough at its lows and begin the long climb that drives secular bull markets.

Another rate hike, they said, would hurt the Fed's goal of getting inflation back up to 2 percent annually.

After a run of weak inflation reports stretching back several months, there was a slight uptick in the October reading of the Fed's favored inflation measure, the core personal consumption expenditures price index.

The emerging markets crisis, strength in the dollar, and weakness in commodity prices could frustrate the Fed's expectations that inflation will rise back closer to 2 %.

When we evaluate the Fed's dual mandate of maximizing employment and stabilizing inflation, we see a pretty healthy labor market, one that is getting back to pre-2008-2009 crisis levels, or even getting back to levels not seen since the 1970s.

Easy money policies abroad push the dollar higher, hurting U.S. exporters and making it harder for the Fed to get inflation back up to its 2 percent target.

So ideally, the Fed's stimulus could get the economy back to a normal rate of growth before inflation becomes a problem, at which point the Fed could taper off its bond buying little by little and gracefully exit the picture.

SCHNEIDER: The number one metric and this gets back into my comments about optionality for the Fed, but the number one metric that the Fed is going to be focused on is the tightness of the job market and wage pressures on the go - forward basis, so sure inflation — headline inflation has perked up a little bit.

The pull back in prices since January relates to higher interest rates as inflation is now running ahead of the 2 % target set by the Fed.

The Fed has printed a ton of money, and inflation will inevitably come back, and the dollar will weaken.

Now, that inflation is feeding back to the US, but slowly.

This happens because the Fed generally raises rates only when inflation pressures are mounting within the economy, and because inflation devalues the mortgage - backed securities upon which mortgage rates are based.

That allows the Fed to hold back its firepower for when things really start to look ugly, while at the same time hedging the inflation risk.

To me, without much evidence, the Fed is hoping that the economy is strong, and that inflation moves back down.

Paul Volcker, the newly appointed Fed chairman, led a sharp shift in Fed policy in October, 1979 which drove interest rates sky high, sent the economy into two back - to - back recessions and knocked inflation out.

We are in uncharted territory here, but if excess money created simply flows automatically back into the Fed's coffers, inflation should not be a concern (assuming that outright purchases are equivalent to term lending).

The Fed has also indicated that it will only shift away from its extraordinarily accommodative monetary policy if inflation moves back toward 2 %.

A boost in productivity could also potentially have the added benefit of holding back inflation and allowing the Fed to keep interest rates lower for a longer period.