In a note published on Monday, Federal Reserve Bank of San Francisco economist Kevin Lansing wrote that current low price inflation “does not yet signal a statistically significant departure from the target after accounting for the ever-present volatility of monthly inflation readings,” adding “recent inflation behavior departs only mildly from earlier patterns.”
He and his Fed colleagues will be cheered about this "good news" claims WSJ (my highlight):
The San Francisco Fed paper is optimistic inflation will rise eventually. “Continued improvements in production and employment relative to their long-run trends would be expected to put upward pressure on inflation,” Mr. Lansing writes.
That should be good news for Fed officials. Since adopting a formal inflation target of 2% in 2012, officials have struggled to meet it, despite showing regular confidence that a return to higher price pressures is right around the corner.
-RW
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