Stephen Miran

So there's over a quarter of a point of core inflation excess that's basically just the stock market moving higher.

And all of the professional investors in the audience know there's been decades of fee deflation in that industry, not inflation.

So there's an error in how this thing is measured and interpreted.

The other thing is housing.

The way the housing inflation is measured, it's picking up the housing market rents of 2022 and 2023, not 2026 or 2027.

We shouldn't be making policy based on what happened in 2022.

We should be making policy based on what's happening in the next 12 months.

So once you correct for these two errors,

the backward-looking nature of shelter and the messed up portfolio management fees.

You look at market-based core ex-housing instead of looking at regular core.

Inflation is running 2.2%.

That's within noise of our target.

We don't have an inflation excess of any inflation that's relevant for supply, demand, and balances of the type of monetary policy we respond to.

We should not be making monetary policy.

We should not be asking people to give up their jobs because of quirks of how inflation is measured.

That just to me is not a good idea for policy.

It's a bit it's a grotesque interpretation of stable prices.

You know, excuse me, there is conversations about that.

You know, people talk a lot about sort of K-shaped economies and things like that.

And I think usually they're talking about households when they talk about that, but there certainly is an element of that on the firm side as well.