Strong economic growth and low inflation. It's a combination that only Americans now nearing retirement had experienced for any length of time. Until recently, that is. In many ways it's back to the 1960s, back to an inflation rate that doesn't skew decisions.
Economists offer plenty of reasons for inflation's taming.
But, down deep, they're surprised. The question for Federal Reserve policy-makers meeting Tuesday and Wednesday is how long such conditions can last. Usually, a strong expansion produces rising inflation. With prices so benign, Federal Reserve policy-makers are likely to postpone any rate increase until the fall, economists believe, although most expect inflation will creep a bit higher eventually. We'll see 3.5 percent inflation next year, at the most.