, Columnist
Federal Reserve's Mild Inflation Forecasts Need Explaining
The central bank should be more realistic in its own projections about what will be required in terms of tightening monetary policy.
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For Federal Reserve officials who want to get inflation under control, the outlook has certainly improved in recent weeks.
First, inflation has peaked. In particular, goods price inflation is falling as supply chain disruptions ease and demand shifts toward services and away from goods. And even though the labor market remains unusually tight, wage inflation has stabilized rather than continued to climb.