Underlying inflation is running pretty close to the Fed's target, Stephen Miran explains

Economic Outlook - The current economic environment is causing anxiety regarding inflation, labor market conditions, and future Federal Reserve leadership [1] - The Federal Reserve is observing a slow but positive trend in inflation, suggesting that underlying inflation is closer to the Fed's target than previously thought [2][3] Inflation Measurement - There are biases in the current inflation measurement process, particularly related to housing costs, which may overstate inflation [4][6] - Market rent inflation has been stable at around 1% for the past couple of years, indicating that the actual inflation measurement may not reflect current market conditions [7][8] - Adjustments to inflation measurement should exclude imputed prices from non-market transactions, which can distort inflation readings [10][15] Labor Market Concerns - The Federal Reserve's monetary policy should be forward-looking, considering the lag in the impact of interest rate changes on the economy [18][20] - Current labor market conditions are loosening, and if not addressed, could lead to significant issues by 2027 [27][28] Federal Reserve Policy - The Federal Reserve has not initiated a new round of quantitative easing; current asset purchases are for reserve management purposes [29] - Regulatory demands on banks have created a persistent need for reserves, which affects the Fed's balance sheet and lending capabilities [32][34]