Steve Cecchetti, professor of economics at Ohio State University and an avowed inflation hawk -- "Hi, my name is Steve, and I'm an inflation hawk," he writes in his monthly inflation update -- wonders where is the moderation in inflation everyone is talking about.
"Until Friday we have seen very little evidence that such a disinflation is underway," he writes.
The annual increase in the core CPI decelerated from 2.7 percent in March to 2.5 percent in May.
Stability is good, even at a high rate. With the Fed stepping on the accelerator so aggressively -- a 50 basis-point rate cut at the end of June would make it 300 basis points in a span of six months -- it's not clear there will be much breathing room between the time a recovery takes hold and the time the Fed has to start raising rates.
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