About this work
US inflation was looking more like a fading supply shock than a persistent excess demand problem in this August 2023 assessment. Jonathan Fortun and Robin Brooks revisit their view that price pressures had narrowed since mid 2022 and interpret the early 2023 pickup as annual price resets. They argue that more modest underlying inflation could allow faster and larger Federal Reserve rate cuts than markets then anticipated.
Abstract
US inflation was looking more like a fading supply shock than a persistent excess demand problem in this August 2023 assessment. Jonathan Fortun and Robin Brooks revisit their view that price pressures had narrowed since mid 2022 and interpret the early 2023 pickup as annual price resets. They argue that more modest underlying inflation could allow faster and larger Federal Reserve rate cuts than markets then anticipated.
Cite this work
Robin Brooks, Jonathan Fortun (2023). Global Macro Views: The End of the US Inflation Shock. Institute of International Finance.