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China's Depression and the U.S. Inflation Outlook
Underlying price pressures in 2024 were either the same or barely changed from 2023. That was despite a worsening slowdown in China that reduced demand…
Jan 18
•
Matthew C. Klein
24
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China's Depression and the U.S. Inflation Outlook
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Conflicting Signals in the Strong Jobs Data
Core unemployment fell sharply while the monthly pace of core wage growth decelerated. Broader measures look a little different.
Jan 10
•
Matthew C. Klein
14
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The Overshoot
Conflicting Signals in the Strong Jobs Data
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There Is No "Reverse Conundrum" Driving Up Bond Yields
Market pricing so far is consistent with traders (and Fed officials) correcting bets on growth that were overly pessimistic.
Jan 9
•
Matthew C. Klein
20
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There Is No "Reverse Conundrum" Driving Up Bond Yields
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December 2024
Fed Officials Really Don't Want a Downturn
Just compare what they were willing to accept back in June to what they hope will happen now.
Dec 19, 2024
•
Matthew C. Klein
15
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Fed Officials Really Don't Want a Downturn
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Inflation and the Job Market are Sending Conflicting Signals
While income growth and inflation remain stubbornly faster than pre-pandemic, measures of joblessness and employment may be deteriorating.
Dec 15, 2024
•
Matthew C. Klein
29
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The Overshoot
Inflation and the Job Market are Sending Conflicting Signals
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November 2024
The Chicago Fed's Austan Goolsbee on Inflation, the Stance of Monetary Policy, the "Field Guide to R-Star", Managing Supply Shocks, and More
An exclusive interview with the president of Federal Reserve Bank of Chicago, who will be a voting member of the FOMC in 2025.
Nov 26, 2024
•
Matthew C. Klein
31
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The Chicago Fed's Austan Goolsbee on Inflation, the Stance of Monetary Policy, the "Field Guide to R-Star", Managing Supply Shocks, and More
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Will Trump's Win (Eventually) Lead to *Lower* Long-Term Interest Rates?
The U.S. macro response to the pandemic preserved living standards better than in other economies. Voters responded more to the impact on inflation…
Nov 8, 2024
•
Matthew C. Klein
22
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Will Trump's Win (Eventually) Lead to *Lower* Long-Term Interest Rates?
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October 2024
Christopher Waller on Wages, Productivity, and Inflation
A few lines from his most recent speech and subsequent Q&A that caught my attention.
Oct 15, 2024
•
Matthew C. Klein
25
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Christopher Waller on Wages, Productivity, and Inflation
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The U.S. Economy Is Not Slowing Down
That is not a problem, but it has implications for inflation and interest rates. Plus: inside the September 2024 NIPA revisions.
Oct 12, 2024
•
Matthew C. Klein
18
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The U.S. Economy Is Not Slowing Down
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September 2024
U.S. Inflation Is Still Hotter than Pre-Pandemic. And that's Okay.
Underlying measures of prices are still rising about one percentage point or so faster than they were in 2017-2019. But there is nothing wrong with this…
Sep 30, 2024
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Matthew C. Klein
20
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U.S. Inflation Is Still Hotter than Pre-Pandemic. And that's Okay.
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The Case for Huge Fed Rate Cuts Up Front (And Maybe Some Hikes Later)
The goal should be getting to "neutral" as quickly as possible. Since no one knows where that is, optimal policy should consist of moving down quickly…
Sep 11, 2024
•
Matthew C. Klein
18
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The Case for Huge Fed Rate Cuts Up Front (And Maybe Some Hikes Later)
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August 2024
Deeper Inside the Chinese Consumer Spending Data
The shortfall in household spending since 2019 is massive no matter how you count it.
Aug 28, 2024
•
Matthew C. Klein
17
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Deeper Inside the Chinese Consumer Spending Data
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