FED, University Of Oregon, Kai Rizal discussed on All Things Considered


I'm Kai Rizal. We would be remiss if we didn't did not mention on the program today. A big speech coming tomorrow from Fed Chair J. Powell. The title. Monetary Policy Framework Review. Is. I think we can all agree a tad dry What It's going to mean in real life, though, says economist him doing at the University of Oregon. And dry it all My expectation is the Fed's going to basically loosen up how they've been thinking about their 2% inflation target. Specifically, the Fed will actually try to overshoot there 2% target a little bit to make up for periods of undershooting, the 2% target. And that's a big deal because central bankers today are still really, really leery of inflation, flashing back as they do to the 19 seventies, and Paul Volker and a prime rate of 21, a half percent But what is this speech going to mean? For you and me where you're going to notice? A difference is maybe over the longer run like in this recovery, The federal probably won't raise interest rates as early as it did in the previous recovery. So maybe as a result of that the recovery is a little bit faster. And that would mean jobs that that broom or quickly that wages that grew more quickly and then maybe inflation was a little bit higher. And as so often happens with the Fed pal, merely talking about higher inflation could just nudge the economy all by itself, even the expectation that policy will be easier for longer. I could actually induced some of us to take economic activity now because it improves our confidence about the future. Tim doing at the University of Oregon there with the setup for Jay Paul's big speech tomorrow on inflation, it's all virtual. By the way, the Fed conference tomorrow You can watch pal speech. So you should you so choose. Go to the Kansas City. Feds. YouTube site YouTube dot com slash Kansas City Fed There are few things more importance when it comes to building wealth in this economy than.

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