An Incalculable Concept That Is Misleading The Fed
Dallas Fed President Lorie Logan recently said that she estimates the Fed Funds target rate needs to rise "an additional 50 basis points or more." Her reasoning is straightforward and grounded in the Fed's Congressional mandates. Inflation is falling as transitory factors fade but trending "toward the mid-2's, not all the way to the FOMC's 2 percent goal." Unemployment at 4.2% sits close to most estimates of the lowest sustainable level. Taken together, she argued: A balanced labor market and inflation trending above target mean the stance of policy has been offsides. Full labor and stable…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.