Nightly Trading Discussion - (April 08/09)

inflations targets haven't worked. The reason it's a target is so that the Fed can get it there (so to speak), otherwise prolonged low inflation will lead to deflation and ergo a Japan-like scene emerges. case in point, look at Europe, the place is crumbling through a "Japanification" scene, although not yet defaltionary.. it's getting there. Also low for longer inflation isn't good for monetary policy, just look at what some Fed members are saying recently.. inflation hasn't met target so no rate hikes.. what if the economy overheats and yet inflation is slow? the Fed HAS to hike rates at that point to curb the runaway economy in-spite of said low for longer inflation. I like your counter though.

/r/thewallstreet Thread Parent