NEW YORK, October 28, 2021--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) releases research that discusses recent inflation prints, market expectations, comparisons with peer countries, and the source of labor market cost-push dynamics for the U.S. The U.S. Federal Reserve’s new flexible average inflation targeting (FAIT) strategy, which takes a more liberal approach to the 2% target, creates uncertainties about the precise path forward for monetary policy even in the face of inflationary pressures. The report also builds on previous KBRA research on pre-pandemic deflationary dynamics and our ongoing commentary on the U.S. employment situation.
Monthly core inflation is decelerating but remains above expectations
Expectations are that the Fed will tolerate above-target inflation over the medium term
U.S. core inflation exceeds that of peers by a wide margin
Short-term job market pressures contrast with expectations for the long term
Credit should prove to be relatively durable in the face of rising inflation expectations
Click here to view the report.
KBRA is a full-service credit rating agency registered in the U.S., the EU, and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.
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Joan Feldbaum-Vidra, Managing Director
+1 (646) 731-2362
Van Hesser, Senior Managing Director, Chief Strategist
+1 (646) 731-2305