Pond: Fed Is Gaming the Data to Fit Its Narrative

The transcript discusses the Federal Reserve's approach to inflation expectations, highlighting the challenges faced by the Fed in maintaining credibility with the markets. It explores the market's low inflation expectations and the Fed's response, including the debate on whether to adjust inflation targets or employ quantitative easing. The discussion also touches on the long-term strategy for inflation targets in a low productivity environment.

What are the implications of the Fed's target being below the current inflation measures?

What challenges does the Fed face in maintaining credibility with the markets regarding inflation expectations?

Discuss the significance of the Cleveland CPI in the context of inflation measurement.

How does the market's expectation of inflation influence the Fed's decision-making?

What are the potential long-term changes the Fed might consider regarding their inflation target?