Is the Fed About to Start Promoting Inflation?

<p><span style="font-weight: 400;">Today on the Brief:</span></p> <ul> <li style="font-weight: 400;"><span style="font-weight: 400;">EU leaders agree on $2 billion stimulus package</span></li> <li style="font-weight: 400;"><span style= "font-weight: 400;">LinkedIn job cuts show weakness in the professional sector</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">Has DeFi jumped the shark?</span></li> </ul> <p><span style="font-weight: 400;">Our main discussion: The Fed’s changing inflation strategy</span></p> <p><span style="font-weight: 400;">University of Oregon professor and Bloomberg columnist Tim Duy recently penned a piece called “</span><a href= "https://www.bloomberg.com/opinion/articles/2020-07-17/the-fed-is-setting-the-stage-for-a-major-policy-change?sref=qUxVp6JU"><span style="font-weight: 400;">The Fed Is Setting the Stage for a Major Policy Change</span></a><span style="font-weight: 400;">” arguing that we’re likely to see more inflation, promoted by the Fed. </span></p> <p><span style="font-weight: 400;">In this episode, NLW breaks down:</span></p> <ul> <li style="font-weight: 400;"><span style="font-weight: 400;">Why the Fed is turning away from its traditional inflation forecasting method </span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">Why the Fed is likely to let real inflation hit 2% before doing anything</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">Why some are calling the move “simply asinine” </span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">Why some think the Fed is full of hot air and has no power to actually create inflation</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">Why the Fed is trapped by its definition of inflation</span></li> </ul> <p><em><span style="font-weight: 400;">Audio clip featuring Alhambra Investments head of research</span></em> <a href= "https://twitter.com/JeffSnider_AIP"><em><span style= "font-weight: 400;">Jeffrey Snider</span></em></a