The Fed’s Magic Number? 2% | Dow Jones Indexes
Describing recent inflation as “subdued,” the Fed said it would keep interest rates near zero into late 2014, and suggested that more stimulus may be needed if inflation were to remain below the 2% target level for a prolonged period.
The Fed’s subdued forecast for inflation appears to be largely aligned with the market’s consensus expectations, based on a read of the Dow Jones Credit Suisse Inflation Breakeven Indexes. Over the past few months the 10-year index been holding fairly steady at a level that is relatively low compared to its long-term average.
Following the Fed’s comments yesterday, the index ticked up slightly, gaining 0.29%.
Following the "read more" on the DJ Blog gets you to the expanded story of the Fed's Magic Number.
The Federal Reserve announced yesterday a 2% target for inflation, advancing Ben Bernanke’s longstanding efforts to offer greater transparency into the bank’s policy decisions by publicly stating a numerical goal.
Describing recent inflation as “subdued,” the Fed said it would keep interest rates near zero into late 2014, and suggested that more stimulus may be needed if inflation were to remain below the 2% target level for a prolonged period.
The Fed’s subdued forecast for inflation appears to be largely aligned with the market’s consensus expectations, based on a read of the Dow Jones Credit Suisse Inflation Breakeven Indexes. Over the past few months the 10-year index been holding fairly steady at a level that is relatively low compared to its long-term average.
Following the Fed’s comments yesterday, the index ticked up slightly, gaining 0.29%.
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