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>In other words, the Fed feels it can continue to juice financial assets and exacerbate wealth inequality so long as the average person doesn’t notice price inc

by yborg 4y ago

>In other words, the Fed feels it can continue to juice financial assets and exacerbate wealth inequality so long as the average person doesn’t notice price increases... And the Fed is not quantifying stealth consumer inflation, which people do notice in spend, namely "shrinkflation" where consumer goods manufacturers reduce the amount of corn flakes in the box and hold the price the same. This was a trend happening before the headline inflation number started to move.

JumpCrisscross 4y ago
> the Fed is not quantifying stealth consumer inflation The Fed doesn't calculate CPI; BLS does. And they do consider quantity [1]. Mainly to account for quantity discounts. But it takes care of shrinkflation, too. [1] https://www.bls.gov/opub/hom/pdf/cpihom.pdf https://www.bls.gov/opub/hom/pdf/cpihom.pdf