2% Inflation Not Realistic This Year: JPMorgan's Feroli

The transcript discusses the Federal Reserve's goal of achieving 2% inflation, questioning its realism in the current economic climate. It highlights the lack of economic pain in the labor market, with robust wage gains and job growth, while noting potential pain in the housing market. The importance of upcoming economic reports, such as the jobs and CPI reports, is emphasized as they will influence the Fed's decisions on interest rates. Market expectations suggest a potential increase in the terminal rate, with a focus on data from January and February to guide future actions.

What is the realistic goal for the Fed regarding inflation, according to the speaker?

What implications does the speaker suggest might arise from achieving the 2% inflation target?

How does the speaker describe the current state of the labor market?

What reports does the speaker mention as important for understanding future economic conditions?

What does the speaker imply about the relationship between data and the Fed's decision-making process?