Inflation at Lowest Point Since Kennedy Era
Washington, D.C., June 19, 2013—Bloomberg News reports that the U.S. is currently experiencing the lowest inflation since the 1960s.
Excluding food and energy, a gauge of consumer prices rose 1.1% in the year through April, 2% below the Fed’s long-run goal. In addition, the jobless rate is at 7.6%, which means that the Fed is falling short of its mandate to ensure stable prices and maximum employment.
Drew Matus, a former economist at the Federal Reserve Bank of New York, predicts that policy makers will probably pledge to plow ahead with record bond buying, setting aside for now concern that growth in the Fed’s $3.41 trillion in assets may stoke long-term inflation expectations or disrupt market functioning, according to Bloomberg News.