Cumberland CIO Says Inflation Tamed ‘for the Time Being’

The transcript covers a discussion on inflation targets, questioning the 2% target and considering lower alternatives. It examines the relationship between treasury yields and CPI, noting a trend alignment in 2017. The debate on whether rising wages cause inflation or vice versa is explored, with differing opinions on the matter. Finally, opinions on future Fed rate hikes are shared, with a subdued outlook for 2019.

What was the main topic of discussion in Maine regarding inflation?

• The effect of treasury yields on inflation

• The role of global competition in inflation

• The appropriate target for inflation rates

• The impact of technology on inflation

What pattern was observed in treasury yields throughout 2017?

• They followed the CPI trends closely

• They showed a significant increase

• They were unaffected by CPI changes

• They were inconsistent with CPI trends

What is the debate regarding the relationship between wages and inflation?

• Whether inflation causes wages to rise

• Whether wages cause inflation to decrease

• Whether wages have no effect on inflation

• Whether inflation is unaffected by wages

What was the general sentiment at the Fed debate regarding rate hikes?

• Most were in favor of immediate rate hikes

• Opinions were divided on raising rates

• Everyone agreed on not raising rates

• There was a consensus for multiple rate hikes

What were the expectations for the peak of Fed funds rates according to the surveys?

• A peak in 2020

• No expected peak

• A peak in 2018

• A peak in 2019