The Federal Reserve Admits Price Inflation Has Picked Up

In its statement released earlier today, the Federal Reserve admitted the obvious:

Inflation has picked up in recent months, mainly reflecting higher prices for some commodities and imported goods, as well as the recent supply chain disruptions.

They followed this observation with nonsense about future inflation:

Inflation has moved up recently, but the Committee anticipates that inflation will subside to levels at or below those consistent with the Committee's dual mandate as the effects of past energy and other commodity price increases dissipate.

This is totally absurd given there is no indication that the Fed is going to stop printing money, despite the end of QE2. Expect price inflation to accelerate and eventual interest rate hikes by the Fed that will be too little too late.