Fed Should “Embrace” And “Communicate Comfort” With Even Higher Inflation: Evans

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Back in September 2017, in what may have been the most stunning admission by Janet Yellen during her tenure as Fed chair, she said that “we don’t fully understand inflation” and added that the “shortfall of inflation this year is more of a mystery.” Since then, the Fed’s understanding of inflation appears to have solidified at least in asmuch as the Fed remains unable to find it, despite soaring US housing prices, which continue to rise roughly 2 to 5 times faster than wage inflation every year (depending on the metro area), not to mention out of control college tuition prices, healthcare costs and sharp occasional spikes in food prices which are far more sticky to the upside, stubbornly refusing

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