Inflation

If there’s one takeaway from this meeting, it’s that the Committee wants to position themselves much more cautiously on the inflation outlook, but the Fed is just a couple of bad labor market prints from having to put more cuts back on the table.

If policy is to have a significant impact on medical services inflation, and by extension aggregate inflation, it is not enough to only tackle costs in the public sector. Policy needs to ensure cost control in the private sector as well.