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Raising the inflation rate target is something that both the Federal Reserve and the People's Bank of China (PBOC) have announced they are seriously considering in 2020. Whether the numbers are actually real or not, the official inflation rate has been very low in developed countries for many years. The Fed is pondering raising the target higher than the current 2% over the medium term, while China is targeting a whopping 4%. Why might they be doing this? I believe it is another method of both countries trying to extend the current economic cycle, which is clearly aging. There is still plenty of leverage in the system and could cause other problems if a downturn begins. I'll have to assume for now that this program will be successful if implemented. As usual, we'll take a look at the trend going on in the S&P500 and update the views from last video. Also, we'll take a look at some inflation themed trades which have been down for several years and might start showing some signs of life. As always, this video is for entertainment purposes only and should not be considered financial advice. Reading Links: https://www.bloomberg.com/opinion/articles/2019-12-02/federal-reserve-s-inflation-approach-to-benefit-markets https://www.scmp.com/economy/china-economy/article/3040251/chinas-central-bank-hints-possibility-higher-2020-inflation Follow me Patreon - https://www.patreon.com/clockworkcharts Twitter - https://twitter.com/clockworkcharts Instagram - https://www.instagram.com/clockwork_charts