I posted the headlines from Williams' speech here:

Just pulling out a quick part of his speech addressing inflation (bolding is mine):

  • Turning to inflation: It is still lower than I'd like. Based on my favorite measure-the trimmed mean-the underlying rate is stable at just over 1½ percent. To understand why inflation has remained low despite an economy nearing full employment, we have to look beyond our shores. The rise of the dollar and the fall in oil prices over the past year have lowered import prices and pushed the inflation rate down. Based on past experience, these effects should prove transitory. As they dissipate, and as the economy strengthens further over the next year, I see inflation moving back up to our 2 percent goal in the next two years.

Transitory ... I don't want to disagree with him, it makes sense to me.

But ... and maybe this is just because I cover the Asian timezone and one of the big 3 central banks in the world, based here, has been saying "2% inflation in 2 years" as a mantra, and is not even close ...

So, keeping with Williams' Hollywood theme (Live Long and Prosper is the title of his speech), maybe I just need to practice my willing suspension of disbelief.

If you're not confused you're not paying attention.