66 straight months. That's how long US inflation has been above the Fed's 2% target.
At some point you stop calling it "transitory" or "temporary" and start calling it what it is: structural.
The Fed's credibility on inflation is shot. They printed too much, stayed too loose for too long, and now they're stuck. They can't get back to 2% without breaking something, and they know it.
So what happens? They'll probably move the goalposts. Redefine the target. Call 3% the new normal. Declare victory.
Meanwhile, your purchasing power keeps getting quietly taxed away. Your savings lose value. Your paycheck buys less.
This is the cost of policy mistakes. And regular people pay it.
At some point you stop calling it "transitory" or "temporary" and start calling it what it is: structural.
The Fed's credibility on inflation is shot. They printed too much, stayed too loose for too long, and now they're stuck. They can't get back to 2% without breaking something, and they know it.
So what happens? They'll probably move the goalposts. Redefine the target. Call 3% the new normal. Declare victory.
Meanwhile, your purchasing power keeps getting quietly taxed away. Your savings lose value. Your paycheck buys less.
This is the cost of policy mistakes. And regular people pay it.
