Wow. Our experiment is off to a great start—let's see if we can finish it off sooner than expected.
The Fed's preferred measure of inflation is core inflation, which excludes food and energy prices. According to the BLS, the core inflation rate in August was just slightly above zero. The core inflation rate over the past two years is 1.17% and the rate over the past year is 0.89%. Chart below. Needless to say, this is well below the Fed's target. Think they'll do anything about this at their next meeting?