From Investing.com: 2024-03-26 15:19:00

The market is anticipating Fed policy to become more accommodative throughout 2024 and into 2025, despite Fed officials pushing back on this assumption. Inflation measures are slightly exceeding expectations, and while rents are declining they are not entering deflation. Wages have not decelerated as expected, leading to doubts about reaching the 2% inflation target sustainably. The Fed’s move to Flexible Average Inflation Targeting (FAIT) allows for more flexibility in meeting inflation goals over time. The inflation swap market suggests that the Fed may need to adjust its target or risk losing credibility.



Read more at Investing.com: Changing the Fed’s 2% Inflation Target – FAIT Non-Accompli?