The employment debate is cooling at the Fed and the inflation debate is heating up.
The Fed wrote a research paper that said inflation might not be as low as it seems.
Even after adjustment for seasonal variations, “the past 10 years have typically seen a pattern in which consumer price inflation has tended to be higher in the first half of the year than in the second half,” Fed economist Ekaterina Peneva wrote.
Higher prices in the first half of the year
This could be an interesting one to watch. Data on Friday showed lower-than-expected PCE inflation and continued soft numbers could prompt the Fed to keep “considerable time” in the statement.
ZeroHedge also makes a great point wage inflation, which is absolutely nil and the real hourly wage is at the same level as December 2008.
