{"id":346031,"date":"2025-07-24T13:38:48","date_gmt":"2025-07-24T18:38:48","guid":{"rendered":"https:\/\/michigandigitalnews.com\/index.php\/2025\/07\/24\/fed-credibility-lost-bordo-siklos-5-year\/"},"modified":"2025-07-24T13:38:48","modified_gmt":"2025-07-24T18:38:48","slug":"fed-credibility-lost-bordo-siklos-5-year","status":"publish","type":"post","link":"https:\/\/michigandigitalnews.com\/index.php\/2025\/07\/24\/fed-credibility-lost-bordo-siklos-5-year\/","title":{"rendered":"(Fed) Credibility Lost? Bordo-Siklos 5 Year"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div id=\"post-57310\">\n\t\t\t\t<!-- .entry-header --><\/p>\n<div class=\"entry-content\">\n<p>We see reversion in the Bordo-Siklos measure of inflation credibility back toward pre-Trump 2.0 levels. However, we\u2019ll see if this is recovery is durable in the wake of Trump\u2019s attacks on Fed independence (including a historic non-ceremonial visit by a sitting President).<\/p>\n<p><a href=\"https:\/\/econbrowser.com\/wp-content\/uploads\/2025\/07\/credibility5yrpix.png\"><img fetchpriority=\"high\" fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-full wp-image-57314\" src=\"https:\/\/econbrowser.com\/wp-content\/uploads\/2025\/07\/credibility5yrpix.png\" alt=\"\" width=\"835\" height=\"532\" srcset=\"https:\/\/econbrowser.com\/wp-content\/uploads\/2025\/07\/credibility5yrpix.png 835w, https:\/\/econbrowser.com\/wp-content\/uploads\/2025\/07\/credibility5yrpix-300x191.png 300w, https:\/\/econbrowser.com\/wp-content\/uploads\/2025\/07\/credibility5yrpix-768x489.png 768w, https:\/\/econbrowser.com\/wp-content\/uploads\/2025\/07\/credibility5yrpix-624x398.png 624w\" sizes=\"(max-width: 835px) 100vw, 835px\"\/><\/a><\/p>\n<p><em><strong>Figure 1:<\/strong> Bordo-Siklos measure of Fed inflation credibility (blue). Calculation assumes CPI target consistent with PCE target is 2.45%. July observation is preliminary. Light orange shading denotes Trump administrations. Orange dashed line at \u201cLiberation Day\u201d. NBER defined peak-to-trough recession dates shaded gray. Source: BLS, NBER, author\u2019s calculations.\u00a0<\/em><\/p>\n<\/p><\/div>\n<p><!-- .entry-content --><\/p>\n<footer class=\"entry-meta\">\n\t\t\tThis entry was posted on <a href=\"https:\/\/econbrowser.com\/archives\/2025\/07\/fed-credibility-lost-bordo-siklos-5-year\" title=\"9:22 am\" rel=\"bookmark\"><time class=\"entry-date\" datetime=\"2025-07-24T09:22:23-07:00\">July 24, 2025<\/time><\/a><span class=\"by-author\"> by <span class=\"author vcard\"><a class=\"url fn n\" href=\"https:\/\/econbrowser.com\/archives\/author\/menzie_chinn\" title=\"View all posts by Menzie Chinn\" rel=\"author\">Menzie Chinn<\/a><\/span><\/span>.\t\t\t\t\t\t\t\t<\/footer>\n<p><!-- .entry-meta -->\n\t<\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/econbrowser.com\/archives\/2025\/07\/fed-credibility-lost-bordo-siklos-5-year\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] We see reversion in the Bordo-Siklos measure of inflation credibility back toward pre-Trump 2.0 levels. However, we\u2019ll see if this is recovery is durable<\/p>\n","protected":false},"author":1,"featured_media":346032,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[155],"tags":[],"_links":{"self":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/posts\/346031"}],"collection":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/comments?post=346031"}],"version-history":[{"count":0,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/posts\/346031\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/media\/346032"}],"wp:attachment":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/media?parent=346031"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/categories?post=346031"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/tags?post=346031"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}