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 conversation during the weekend in Maine?

Why is the target inflation rate set at 2% according to the discussion?

What evidence was presented regarding the future of inflation and wages?

What are the differing opinions regarding the relationship between wages and inflation?

What was the general sentiment about raising interest rates among the group at the camp?