News & Insights
Welcome to the FIA News & Insights, a one-stop resource that includes insights from senior investment professionals on timely market events, their views on the economy and their respective markets. Find updates on the latest media information on Frost Investment Advisors, LLC and the most recent reprints, as well as, archival information for your reference.
The Fed Claims There is An Inflation (as in, a lack of) Problem—Not Really!
The Federal Reserve (Fed) made a shift last week in its policy toward inflation—the relationship between the level of unemployment and future inflation trends and its monetary policy framework in relation to inflation expectations for the United States. It announced its plan to view its 2 percent inflation target as an average level target and not a maximum cap rate. What does this mean? The Fed is confirming that its estimate of inflation over the past few years has been running below 2 percent, and thus it is comfortable with, and even wants to allow, future inflation levels to rise over 2 percent to get to a long-term average of 2 percent.
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