The Fed is yet to catch up to the Taylor Rule estimateSubmitted by Surlax t3_11e65gn in wallstreetbets
SufficientTowers t1_jad4sq6 wrote
Reply to comment by Due-Employee9272 in The Fed is yet to catch up to the Taylor Rule estimate by Surlax
It's worth reminding everyone that inflation is a YOY rate of change metric. If everything goes up 10% in year one and then another 5% year two, the reported inflation rate will be 5% despite everything having gone up 15.5% in two years.
With enough time inflation will eventually "come down" so a decreasing number is misleading with regards to how much stuff increased in cost.
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