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Wait, wait, wait. Hold up. The Federal Reserve just concluded its near two-year long Grand Strategy Review. The purpose, in its most basic component, was to figure out why inflation hadn't shown up in the manner everyone at the Federal Reserve spent years promising even though the unemployment tumbled to 50-year lows.
The labor market was so tight, inflation was guaranteed. Then it didn't happen.
Behind the resulting monetary policy change (spoiler: not a change) to an average inflation target revealed last week first lies a flattened Phillips Curve. As I wrote a few