Jon Hilsenrath in the Wall Street Journal on the weekend says that “inflation (is) now lower than the Fed wants”.
Its worth paying to attention to Hilsenrath, he has been described as the ‘Fed’s mouthpiece’ – his writings are one of the channels the Fed uses to communicate with the markets.
Fed officials after their March policy meeting talked about tapering off the bond purchases later this year if the economy continued to gain strength. But inflation readings have since slipped, and employment numbers have been disappointing.
Tame Inflation to Keep Fed on Course (The Wall Street Journal is often gated, so if you’re unable to access the article try a a Google news search using the headline)
