But that was from a time when policy makers were prone to worrying about inflation being too high, not too low. At 1.5% in May, it’s well shy of the Fed’s 2% target and on its own could be a reason for a rate cut.
With the support of the Fed, “this expansion can go on for a good while longer,” said Peter Hooper, global head of economic research for Deutsche Bank.
This article was provided by Bloomberg News.