Federal Reserve flirting with higher inflation...

[Dissent]

Federal Reserve flirting with higher inflation - Yahoo! News

jesus h christ......it does no good for people to try and save for retirement...we allow a bank not under control of anyone to screw with the economy and money supply...

 

[waltky]

Inflation startin' to raise it's ugly head...

Inflation Inches Up As Fed Pares Stimulus
June 20, 2014 — Inflation is strengthening just as the Federal Reserve continues to wind down its bond stimulus, known as quantitative easing, which has been the central bank's main tool to spur economic growth over the past few years.

On Tuesday, the Bureau of Labor Statistics released the consumer price index (CPI), which rose 0.4% in May and is up 2.1% over the past year. The Federal Reserve's inflation target is 2%.

While the CPI aims to replicate a basket of goods consumers purchase, it's not the inflation gauge the Fed focuses on. Instead, the Fed relies on the personal consumption expenditure price index (PCE) from the Commerce Department, which according to the latest reading on May 30, fell 0.1% in April, but rose 1.6% over the past year.

"The PCE provides more comprehensive coverage," says Kevin Horan, director of fixed income indices at S&P Dow Jones Indices. "You can always get into the debate of what the basket looks like or whether it represents the consumer, but the Fed has spent a long time studying the two and chose to go with the PCE."

In the Fed's latest FOMC meeting held on Wednesday, Chairwoman Janet Yellen alluded to the possibility of rising prices in the future, without directly referencing the latest uptick in inflation: "If incoming information broadly supports the Committee's expectation of ongoing improvement in labor market conditions and inflation moving back toward its longer-run objective, the Committee will likely reduce the pace of asset purchases in further measured steps at future meetings."

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[thereisnospoon]

No doubt at the behest of the Obama admin, the Fed has held interest rates artificially low.
No president no matter the party wants to be in office when inflation or high interest rates rule the economic news.