Thursday, April 14, 2011

The Amazing Views of Fed Members on Price Inflation

In a speech today, Federal Reserve Bank of Minneapolis President Narayana Kocherlakota said that:
Core inflation is a much better signal of where inflation is going to go in the future. There’s really not much signs of inflationary pressures building up.
Meanwhile, during Q&A following a speech, Fed Governor Elizabeth Duke said:
If the Federal Reserve does its job, you should not expect high inflation rates over the next decade.
Simultaneous with these comments, the World Bank reported that food prices were up 36% last year, and the BLS reported that the Producer Price Index was up 5.8% over the last 12 months.

1 comment:

  1. Wenzel,

    I lanced this egghead back on January 10th. Yolk and shell fragments went flying all over the place and Kocherlakota's nerdy, cult-like weekend Dungeons and Dragons crew had to play a man down, as a result.