Fed’s Barkin: We will be looking at trimmed mean inflation for next 6 months

Comments from the Richmond Fed President

  • Over the next six months we need to ‘look through’ 12 month inflation
  • We will focus on month-over-month inflation and trimmed mean inflation
  • Retailers are already seeing things ‘flying off the shelves’ because of stimulus cheques
  • We need to watch broader measures of jobs like employment-to-population
  • We expect high inflation in the next three months
  • We’re not seeing any disorderly markets now
  • Prospects for the economy are getting stronger

I’d like to ask the Fed: When will you know you’re wrong on inflation? When will you know that the H2 moderation in inflation that you’re expecting hasn’t materialized?

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