Don't Expect Dramatic Action From the Fed
I have made the case in prior columns that the only chance of a sustained increase in U.S. interest rates is if inflation picks up. After looking at today's Consumer Price Index report, a fair question is, how high does inflation have to get before the Fed starts paying attention?
The Fed has a stated goal of keeping inflation around 2%. Year-over-year CPI was 2.7%. Even the much-maligned core CPI rose 2.3% over the last year. But true inflation is very difficult to measure....614 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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