Alexander W. Salter
The Fed Delivered Disinflation
“Most prices are higher today than they would have been had they grown at an average rate of 2 percent since January 2020. We oughtn’t pin a medal on an arsonist’s chest for putting out a fire he started.” ~Alexander W. Salter
The FOMC Was Right to Not Hike
“The best approach for the FOMC is to keep its rate target where it is. We should wait for additional inflation data in November before calling for even-tighter monetary policy.” ~Alexander W. Salter
Alan Blinder: Let Them Eat Disinflation
“Blinder thinks deflation always and everywhere causes economic harm. ‘It takes a truly sick economy to cause deflation,’ he warns. But he’s wrong.” ~Alexander W. Salter
Rising Treasury Yields Can’t Substitute for Fed Rate Hikes
“If the yield curve is the explanation, then market forces aren’t ‘substituting’ for Fed policy. They’re simply reflecting an economic transition from one microeconomic equilibrium in the market for loanable funds to another.” ~Alexander W. Salter
Forced Reconversion to that “Old-Time Fiscal Religion”
“Circumstances beyond our control will likely compel us to revert to something like the ‘old-time fiscal religion’ of balanced budgets during ordinary times, reserving deficits for extraordinary times.” ~Alexander W. Salter
Steady As She Goes
“But even if new PCE figures confirm a bump in the disinflationary road, it’s still likely best for the FOMC to hold off on further rate hikes.” ~Alexander W. Salter
Inflationary Growth is Fake News
“Economic growth means more output. Comparatively less money chases comparatively more goods. All else equal, prices across the economy should fall.” ~Alexander W. Salter
Another Rate Hike? Let’s Not
“Interest rate and liquidity data point to the same conclusion: monetary policy is sufficiently tight. Further tightening could cause a painful economic contraction.” ~Alexander W. Salter
David Malpass on Inflation and Slow Growth
“If we try to push supply-side economics as an inflation-reduction strategy, we’re setting ourselves up for failure by banking on a problem that’s largely solved.” ~ Alexander W. Salter
Don’t Panic over the Latest Inflation Numbers
“To put it plainly, monetary policy is already tight enough. The Fed’s job now is to stay the course.” ~ Alexander W. Salter
