Striking Parallels Between Today's Inflation Report And 2011

Sign up for our free February 19th Presidents' Day Webinar. Visit our webpage for the details:https://www.eurodollar.universityNo one remembers the "red hot" and "sticky" supply shock of 2010 and 2011 BECAUSE it was, yes, transitory. The Fed didn't need to raise rates or do anything. In fact, the FOMC was busy with more "accommodating" policies like Operation Twist and then two more QEs, yet consumer prices disinflate-d anyway. Outside of one artificial piece of the CPI, the January 2024 version was in every other way just like back then.Eurodollar University's Money & Macro AnalysisCNNMoney Consumer prices up 2.1% in past yearhttps://money.cnn.com/2011/03/17/news/economy/cpi_inflation/index.htmBoston Fed Eric Rosengren A Look Inside a Key Economic Debate: How Should Monetary Policy Respond to Price Increases Driven by Supply Shocks?https://www.bostonfed.org/news-and-events/speeches/a-look-inside-a-key-economic-debate-how-should-monetary-policy-respond-to-price-increases-driven-by-supply-shocks.aspxFOMC Transcript September 2011https://www.federalreserve.gov/monetarypolicy/files/FOMC20110921meeting.pdfDecember 2011 Tealbookhttps://www.federalreserve.gov/monetarypolicy/files/FOMC20111213tealbooka20111207.pdfTwitter: https://twitter.com/JeffSnider_EDU