And slack in the labor market has continued to diminish, so the downward pressure on inflation from that channel should be diminishing as well. In addition, with regard to expectations of inflation, it is possible to consult the results of the SEP, the Survey of Economic Projections, which FOMC participants complete shortly before the March, June, September, and December meetings.
Much attention lately has been devoted to the low rate of personal saving in the United States — the rate that just recently dipped below zero. But while personal saving is one important component of national saving, it is only one component. A country with high business and/or government saving can provide plenty of resources for new capital investment, even with low personal saving.