Aggie Spirit said:
I'd argue that expectations, based upon the 10 year break even rate, running 25 bp above an artificially low target isn't "running hot." This is about the Dems trying to transfer responsibility for Bidenflation.
Inflation oscillated around 2% for a couple decades, supporting the view that it's achievable. It was enabled by increasing productivity which allowed employers to increase wages annually without having to increase prices materially.
That all went to hell with Covid supply disruptions, coupled with Biden's massive giveaways.
But that's history. Trump has been in office over a year now, and an objective view of several inflation metrics indicate that inflation is hovering around 3%, +/- depending on the month. December PCE was 3% and PPI just turned in at 3.6% in January.
That's higher than target and described as "hotter" than expected because the last couple data points were above expectations. Trump and team would benefit from stop trying to tell people that inflation is ok and they should feel good about it, to instead communicating what they are doing to manage it down over time and how the Dems are obstructing that agenda.