Lates News

"Federal Reserve Sound Tube" Nick Timiraos: Third, the core non-housing services inflation rate remains around 3.5% year-on-year. In the five years before the outbreak of the epidemic, this indicator averaged 2%. The Fed does not need to lower this indicator to the 2% target level, as the inflation rate was below 2% before the epidemic broke out. Furthermore, if housing demand slows down further this year, this indicator does not need to drop to such a low level. However, the over-adjustment of core goods and core non-housing service prices relative to the pre-epidemic equilibrium level is still a major challenge for inflation to fall to 2%. Improvements are needed in at least one of these two indicators.