BlockBeats News, October 14th, Renaissance Macro’s Chief Economist Neil Dutta wrote that although inflation remains above the Federal Reserve’s 2% target, the cooling price trend is now very apparent, so the Fed should completely shift its focus to supporting the weakening economy.
He stated that energy prices are falling, which will drive down gasoline costs and help curb inflation expectations. Additionally, the slack in the labor market has increased, and rental housing inflation is also slowing. “In short, inflation is no longer a problem. Policymakers should make it clear that supporting economic growth should be the current top priority.” (FXStreet)
