Fed is facing a dilemma - ANZ

Analysts at ANZ suggest that the US Fed is facing a dilemma as CPI remains subdued and economy remains close to full employment.

Key Quotes

“The US economy is close to full employment and is growing above trend (the current GDPNow estimates from St Louis and Atlanta suggest GDP is growing at 3.7% annualised in Q3 2017). Yet CPI inflation remains very subdued. It appears that there are a number of structural forces at work, including technology disruption that are limiting the pricing power of firms and workers. In their absence inflation may well be higher.”