The idea is that there is some moderate, positive rate of inflation that produces the lowest minimum unemployment rate that can be sustained
without accelerating inflation.
Another condition typically necessary for recession is an overheating economy — that is, an economy operating beyond full employment,
with accelerating inflation and quickly rising interest rates.
«I hope the Fed will not now invest its credibility in signaling further increases until and unless there is much clearer evidence
of accelerating inflation,» he writes.
Bond indexes have declined this year, as the growing economy has led the Fed to raise interest rates and investors have grown increasingly concerned about the potential
for accelerating inflation.
In my view, the most likely accompaniment to economic weakness would not be a decline in nominal rates, but
somewhat accelerated inflation (meaning that real interest rates might very well fall to negative levels), and possibly substantial weakness in the U.S. dollar.
(v) The apparent rigidity of inflation expectations and insensitivity of inflation to measures of slack create extra uncertainties about the conventional idea that unemployment rates in the 4.5 percent range
risk accelerating inflation.
The Bank of Japan expanded monetary stimulus on July 29 through a modest increase in purchases of exchange - traded funds (ETF), yielding to pressure from the government and financial markets for bolder action to spur growth and
accelerate inflation towards its 2 percent target.
In order to do it, Reagan endured a recession at the start of his presidency — a massive hangover engendered by thirty years of
steadily accelerating inflation.
Elsewhere, Brainard devoted the bulk of her remarks to traditional asset classes such as stocks and bonds, where she said prices may be «particularly susceptible to an unexpected development» such
as accelerating inflation.
Experts are in consensus the U.S. economy is headed
for accelerated inflation, which will drive up housing prices, along with all other living expenses, making it harder for prospective homebuyers to save for their down payment.
«Tariffs would probably have the unfortunate effect of both slowing growth and
accelerating inflation, and that's not a good thing,» said Ward McCarthy, chief financial economist at Jefferies.
But firms» attempts to raise their prices above other firms» prices results in ever -
accelerating inflation and eventual collapse of money.
I hope the Fed will not now invest its credibility in signaling further increases until and unless there is much clearer evidence of
accelerating inflation.
Sky - high interest rates and two recessions occurred before the Fed could finally break the back of
accelerating inflation.
Initially,
accelerating inflation may depress share prices.
This should inevitably benefit oil and gas demand & prices — whether it reflects a liquidity phenomenon, a dollar depreciation,
accelerating inflation, and / or simply a scramble for real assets.
But just as these financial elephants began trampling on one another in their rush to equities, we entered an era of
accelerating inflation and higher interest rates.
Accelerating inflation and a spike in oil prices helped kick off the 1973 - 74 bear market, even in the face of strong earnings growth.
This rally in Treasury yields has moved so swiftly because the underlying data coming in gives credence to views of stronger growth and
accelerating inflation.
They don't want inflation rates to fall too far, as this limits their ability to boost a weakening economy, but neither do they want tightening labor markets to overheat and lead to
accelerating inflation.
Stock markets are seeing bigger fluctuations this year amid speculation over signs of
accelerating inflation, the pace of Federal Reserve rate increases and U.S. trade tensions with China.