Maybe in Princeton, where fucked up hovels sell for $500 per sq ft, there is an overshoot on the Fed’s inflation target, or my local Whole Foods that I share with Mr. Blinder. Other than that, I’d like to remind the good Vice Chairman that the deflationary vortex, consisting of $10 trillion in negative yielding bonds, is coming for him and it’s going to eat his face, while he’s still alive.
Sorry, I really digressed there for a minute.
Blinder is sounding extra hawkish in this video, especially greasy for someone who should be relaxing and enjoying his quasi-retirement.
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The notion of “overshoot” is nonsense. The Fed target of 2% inflation means an average over multiple year not a target, once reached, that means pulling the rate trigger. Wrong. But many “hawks” seem to believe it or pretend to believe it. More bad faith than bad understanding.
Since inflation has been trending down for five years and way under 2% for three years we easily could have three years of 2%+ inflation without hitting the Fed inflation “target.” Stop the bullshit, hawks.
The fed fucked up bad. We have had stagflation! Medical and housing and energy until 2014 is way to fucking expensive for nurses and teachers.
I thought Blinder was a dove. Now he’s worried that inflation might creep over 2%? We’d be better off if it did.
$500 a sq foot is a bargain in my hood. I fantasize about Princeton home prices here in Menlo Park.