Calculated Risk notes that inflation is still running below the Fed's target:
Key Measures Show Low Inflation in August: The Cleveland Fed released the median CPI and the trimmed-mean CPI this morning...
This graph shows the year-over-year change for ... four key measures of inflation. On a year-over-year basis, the median CPI rose 2.1%, the trimmed-mean CPI rose 1.7%, the CPI rose 1.5%, and the CPI less food and energy rose 1.8%. Core PCE is for July and increased just 1.2% year-over-year.
On a monthly basis, median CPI was at 2.1% annualized, trimmed-mean CPI was at 1.5% annualized, and core CPI increased 1.5% annualized. Also core PCE for July increased 0.9% annualized.
These measures indicate inflation is below the Fed's target.
Unemployment is too high and inflation is too low (and inflation expectations are stable). Why are we talking about tapering?