From Tim Duy: Janet Yellen’s Inflation Problem
Federal Reserve Chair Janet Yellen has been vexed by an inflation problem. Now she is also vexed by an inflation expectations problem. …
[M]y expectation is that the Fed does not change its inflation expectations language in this week’s FOMC statement. If they do, they have to understand that they market participants will price out rate hikes until 2017. I don’t think they want this; I think instead the Fed will be working to keep July in play (a tall order in my opinion).
• Schedule for Week of June 12, 2016
Oil prices were mixed over the last week with WTI futures at $48.66 per barrel and Brent at $50.27 per barrel. A year ago, WTI was at $60, and Brent was at $63 – so prices are down almost 20% year-over-year.
Here is a graph from Gasbuddy.com for nationwide gasoline prices. Nationally prices are at $2.38 per gallon (down about $0.40 per gallon from a year ago).