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Philip R Lane: Monetary Policy, Low Interest Rates and Low Inflation (BIS, 4 min read) Incremental, sustained easing is needed in a low interest rate environment while pre-emptive easing can also act against an engrained downward shift in inflation expectations. Fiscal policy is a powerful tool in this lower-for-longer environment.
Two Measures of Inflation and Fed Policy (Advisor Perspectives, 3 min read) The more stable measure of core PCE explains why it is the Fed’s preferred measure of inflation, but its disinflationary trend (currently at a below-target 1.63%) suggests Fed policy has not been effective.