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> The main threat to QE is inflation, which is hovering around 2% and stubbornly low, so QE is in the clear. Obligatory comment that the measure of inflation u
by tenpies 7y ago
> The main threat to QE is inflation, which is hovering around 2% and stubbornly low, so QE is in the clear.
Obligatory comment that the measure of inflation used by the Fed - core inflation - intentionally under presents inflation. It literally takes a basket of all goods, sorts by least volatile, and picks the least volatile items possible.
- esoterica 7y agoDiscarding the most volatile categories is not the same as throwing out the ones that increase the most. Energy prices fluctuate both up and down, so throwing out energy will frequently increase, not decrease the measure of core inflation.