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Fed's Credibility Tested As Inflation Drifts Below Target

Thursday, May 9, 2013 - 6:00 AM
From Reuters
With the inflation rate about half of the Federal Reserve's 2.0 percent target, the central bank is facing a major test and some experts wonder whether it will eventually need to ramp up its already aggressive bond buying program.

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The article has a useful overview of the different inflation indexes like PCE and CPI that the Fed uses in its decision making process.
3
Ken TuminKen Tumin5,441 posts since
Nov 29, 2009
Rep Points: 123,675
1. Thursday, May 9, 2013 - 9:16 AM
Dear KenBDG,

Quite an amazing fact that the inflation in real life is currently declining.

This fact stands in stark contrast to dire warnings we've read again-n-again on this blog about how the FOMC's policies will "eventually" lead to higher and higher inflation leading to collapse of the US of A.

Yours Truly,
- Anon
1
ytytytytytytytyt158 posts since
Jan 28, 2013
Rep Points: 623
Reply