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Fed Bets Inflation Expectations Will Stay Controlled


Inflation Fears Abound as Gas and Lumber Shortages Bite. Should the Fed Worry?
Federal Reserve officials believe low and stable price expectations give them room to heal the job market. But what if outlooks change?
Travelers at McCarran International Airport in Las Vegas. Prices are rising on everything from airline tickets to used cars as the economy reopens.Credit.Joe Buglewicz for The New York Times
May 17, 2021Updated 4:34 p.m. ET
Turn on the news, scroll through Facebook, or listen to a White House briefing these days and there’s a good chance you’ll catch the Federal Reserve’s least-favorite word: Inflation. If that bubbling popular concern about prices gets too ingrained in America’s psyche, it could spell trouble for the nation’s central bank. ....

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Opinion | Krugman Wonks Out: The Case for Supercore Inflation


to receive it.
If Thursday’s retail sales report is anything to go by and it is we’re about to see a really big boom. Between stimulus checks and vaccinations, we’re very likely headed for a year of growth faster than anything since 1984. Happy times are here again!
But what about inflation? The debate we’ve been having over whether the American Rescue Plan is excessive is kind of surreal for those who remember the macro debates after 2008; this time, economists on the other side are neither knaves nor fools. There are indeed reasons to be worried about inflationary overheating. In fact, even those of us who think it will be OK expect to see above-normal inflation this year. We just think it will be a blip. ....

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How the U.S. Got It (Mostly) Right in the Economy's Rescue


Analysis
How the U.S. Got It (Mostly) Right in the Economy’s Rescue
Though the recession has been painful, policymakers cushioned the pandemic’s blow and opened the way to recovery.
Shoppers at a mall in Los Angeles. Consumer spending is nearly back to its prepandemic level.Credit.Mark Abramson for The New York Times
March 15, 2021
When the coronavirus pandemic ripped a hole in the economy a year ago, many feared that the United States would repeat the experience of the last recession, when a timid and short-lived government response, in the view of many experts, led to years of high unemployment and anemic wage growth. ....

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