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Press release content from Business Wire. The AP news staff was not involved in its creation.

KBRA Releases Research – U.S. Inflation: How Much of a Threat?

October 28, 2021 GMT

NEW YORK--(BUSINESS WIRE)--Oct 28, 2021--

Kroll Bond Rating Agency (KBRA) releases research that discusses recent inflation prints, market expectations, comparisons with peer countries, and the source of labor market cost-push dynamics for the U.S. The U.S. Federal Reserve’s new flexible average inflation targeting (FAIT) strategy, which takes a more liberal approach to the 2% target, creates uncertainties about the precise path forward for monetary policy even in the face of inflationary pressures. The report also builds on previous KBRA research on pre-pandemic deflationary dynamics and our ongoing commentary on the U.S. employment situation.

Key Takeaways

  • Monthly core inflation is decelerating but remains above expectations
  • Expectations are that the Fed will tolerate above-target inflation over the medium term
  • U.S. core inflation exceeds that of peers by a wide margin
  • Short-term job market pressures contrast with expectations for the long term
  • Credit should prove to be relatively durable in the face of rising inflation expectations

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Click here to view the report.

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About KBRA

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KBRA is a full-service credit rating agency registered in the U.S., the EU, and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.

View source version on businesswire.com:https://www.businesswire.com/news/home/20211028006052/en/

CONTACT: Joan Feldbaum-Vidra, Managing Director

+1 (646) 731-2362

joan.feldbaumvidra@kbra.comVan Hesser, Senior Managing Director, Chief Strategist

+1 (646) 731-2305

van.hesser@kbra.com

KEYWORD: UNITED STATES NORTH AMERICA NEW YORK

INDUSTRY KEYWORD: BANKING PROFESSIONAL SERVICES FINANCE

SOURCE: Kroll Bond Rating Agency

Copyright Business Wire 2021.

PUB: 10/28/2021 02:02 PM/DISC: 10/28/2021 02:02 PM

http://www.businesswire.com/news/home/20211028006052/en