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It wasn’t exactly a slow news week, but still the New York Times had the temerity to take away space from any number of its Harvey Weinstein updates to tell us, way back on the 4th page of the business, that “Fed Still Puzzled by Inflation, but Rate Increase Is on Track.” This has been the story for a year at least and the question of why inflation is low continues to give way to the Fed’s confidence in its models that it will eventually rise. I get they want to hike, I guess everyone does. Why they want to hike is another story though centered essentially on the Phillips curve which is rather a faulty, but persistent, argument. Read more from David Ader's latest musings.
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