When will the US beat inflation? What Powell said yesterday

https://www.federalreserve.gov/newsevents/speech/powell20221130a.htm#

And here I propose to look at the second graph. That RCE is the green curve. And our usual inflation is a red curve. What is the difference? Ordinary inflation or CPI is a certain standard set of goods and services with standard weights. PCE is what a person consumes. Those. Yesterday Pete ate beef, and today it's expensive. And Pete began to eat chicken, which has risen in price less. Therefore, this month we will consider the increase in the price of chicken compared to the previous period, and not beef. What's with the inflation rate? RCE turned out to be less than CPI? Excellent. We will talk about RFE and tell you about our successful fight!

Let's get back to the speaker.
And despite policy tightening and growth slowing over the past year, we see no clear progress in slowing inflation.
In other words - In order for the economy to grow, demand is necessary. As demand grows, inflation rises. Inflation is growing - it is necessary to kill demand ...


Further, Citizen Powell suggests that we disassemble inflation into its atoms in order to understand what harms us and what we need to fight.
We get three main components: inflation of basic goods, inflation of housing services and inflation of basic services other than housing.
At the beginning of the pandemic, commodity prices rose strongly. However, supply chain problems are now beginning to improve. Commodity inflation shows the strongest reduction in growth rates. Well, she shot the best last year.
Housing service inflation is an increase in the price of rent and an increase in the rent of a dwelling, equivalent in value to what the owner occupies (if he does not rent). This category is growing. But she tends to be late. The market rate for new leases has been falling since the middle of the year (Figure 2).
As long as new rent inflation continues to fall, we expect housing service inflation to start declining sometime next year. The decline in this inflation underpins most forecasts for declining inflation.

And incomes somehow incorrectly grow strongly.
Total for the review of economic conditions:
1. Growth in economic activity has slowed down and is well below its long-term trend, and this needs to be sustained.
2. Commodity prices are likely to continue to decline
3. Inflation of housing services is likely to continue to grow, all hope for a decrease in rental prices
4. Wage growth too big to match 2% inflation

On monetary policy
The rate will go up. Yes, it is possible that the rate of increase will begin to decline as early as December. But there will be increases. How? unknown

In short, what do we have? In general, the wheel of victorious reports is spinning. But two things interfere - too high incomes of citizens and ... well, of course, Putin. See how CorePCE is disassembled in detail?
Has anything been said about the main growth? Energy carriers? Food? No. Difficult. So we just won't talk about it.

 

When its government stops printing money when it doesn't have enough to cover what it spent. When will that happen? I'll leave the guesswork up to you.

 

Wrong answer. F- for effort.

 

True answer. I return the F.