Jim Picerno has a good post on inflation over at The Capital Spectator (MONEY, OIL, ECONOMICS & THE SEARCH FOR THE BOTTOM LINE):
“In the meantime, the Fed forges ahead with its inflationary quest. CPI is rising at an annual rate of 1.7% as of last month while Fed funds remain at 1%. Although Poole hasn’t commented on this yawning gap, he has at least stated his strategic beliefs on how a central bank, in theory, should act: “Of critical importance to maintaining low and stable inflation is the FOMC’s commitment to act aggressively when inflation risks change, either up or down,” he said last week, according to Reuters.
Don’t let the dismissive commodity statement fool you.”
Jim is an editor at Bloomberg, and has a wealth of experience with all things economic. If you haven’t already, you should put The Capital Spectator on your regular econo circuit ride.