I'm looking at it the exact same way the fed is, so explain that. Are they not privy to this "new" definition of inflation? Does Powell know he can't say “at least a temporary rise in inflation" because by your definition inflation has to permanently increase prices month after month after month?
If inflation went down, as in negative, that's deflation. If you meant to say it was 5% one year and 3% (down 2%) the following year, then yes that is still inflation but closer to the feds targeted long term rate. $100 to $105 (5%) to $102.90 (-2%) is deflation in year 3 whereas $100 to $105 (5%) to $108.15 (3%) is inflation in year 3.
By your definition we didn't have inflation in '22 and '23 because it wasn't sustained and is back in the 2% range today. But that's incorrect, we very much has inflation and things today (generally speaking) are much more expensive then they were then meaning consumers have less purchasing power. Whether higher than targeted inflation only last for a month, 6 months, or 6 years, they're all inflation and lead to the same things - higher prices and less purchasing power. That is the concern.
Again, not at all. Unless, to quote you, you know better than the fed chair.
By
akvanden ·
