Dear Janet… A Memo From Millennials To The Fed

Jon Alternative Media, Banking, Blogosphere, Economy, Fiscal Policies

The Federal Reserve’s long-term influence hinges in part on its ability to convince millennials that its current policies can help push inflation closer to the central bank’s 2% goal. That’s not as easy as it sounds, because this cohort has both a different history and current relationship with this economic variable.

Why?
#1 – Understand the millennial experience. Since 2000 – when the youngest millennials started becoming adults – the Core PCE Price Index has averaged just 1.7% y/y. That compares to 4.3% y/y growth on average from 1965 to 2000 over the majority of baby boomers’ adulthood. We have always lived in a low-inflation world contrary to our parents.

This post was published at Zero Hedge on Aug 28, 2016.