With Stubborn Inflation, What Should the Fed’s Target Be? (With David Beckworth)

In this episode, Liz Ann Sonders and Kathy Jones analyze the March 2024 CPI information and its impact on the bond markets and Fed policy. CPI was available in higher than expected, with considerable boosts in real estate, clothing, and transportation services, most likely closing the door on a June rate cut, as the Fed will likely have to be patient and await the numbers to enhance..

Then, Kathy interviews David Beckworth. They go over the principle of nominal GDP targeting as an alternative approach to financial policy. He discusses that rather of targeting the cost level or inflation, small GDP targeting concentrates on supporting total dollar costs in the economy. Beckworth also talks about how small GDP targeting could have been used during the pandemic and its prospective advantages for reserve banks. He highlights the importance of following nominal GDP and asset costs as indications of the health of the macro economy.

Finally, Kathy and Liz Ann offer their outlook on the coming week's economic information.

David Beckworth is the host of the Macro Musings () podcast and is a senior research study fellow at the Mercatus Center () at George Mason University as well as a previous international financial expert at the U.S. Department of the Treasury.

On Investing is an original podcast from Charles Schwab (). For more on the show, go to schwab.com/OnInvesting ().

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With Stubborn Inflation, What Should the Fed's Target Be? (With David Beckworth)

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