Forecasting future inflation and nowcasting contemporaneous inflation are difficult. We propose a new and parsimonious … model for nowcasting headline and core inflation in the U.S. price index for personal consumption expenditures (PCE) and the … and PCE inflation also significantly outperform those from the Survey of Professional Forecasters, with similar nowcasting …

both deviations from the policy rule and a drifting inflation target. Once the inflation target is fixed, the incidence of …