Economic & Market Outlook
“I personally don’t see any good reason to think that the last mile is going to be especially difficult”
– U.S. Treasury Secretary Janet Yellen
Whether talking about e-commerce delivery logistics or running a marathon, the last mile is often considered the most difficult. In fact, Amazon has a well-defined strategy around reducing costs and other issues associated with improving the last mile delivery.
Many economists believe that the last mile of getting inflation down from its current level to the Federal Reserve’s (“Fed’s”) target will be the hardest, according to The Wall Street Journal (“WSJ”). In an interview at the WSJ CEO council summit in December, U.S. Treasury Secretary Janet Yellen said that she sees no reason, given the path we are on, why inflation should not gradually decline to levels that are consistent with the Fed’s inflation goal.
Yellen’s views are consistent with those expressed by Fed officials at the December Federal Open Market Committee (“FOMC”) meeting, according to the recently released meeting-minutes. They believe the U.S. economy is on track for a “soft landing”; that is, inflation should continue to come down to the Fed’s target without the U.S. economy experiencing, in Yellen’s words, a period of high unemployment or recession.