Thought Leadership

Bulletin: Understanding the Inflation Puzzle

April 2, 2015

In this piece, Portfolio Manager Brian Meaney reviews the current inflation picture in the US and how it relates to the economy and a possible Federal Reserve rate hike.

Bulletin Summary

  • The US economy has seen positive growth and falling unemployment, but inflation has been quite low.
  • Easy monetary policy and falling unemployment have not caused sustained inflationary pressure. As history shows, this is not a new phenomenon.
  • Structural changes and global economic forces play some role in persistently low US inflation.
  • The conflicting data on jobs and inflation means the Federal Reserve must be pragmatic about raising rates, which they expect to begin later this year.

Please click on the link below to download the commentary.