The Fed still expects headline inflation to grow at 1.5% this year, while its expectations for core inflation, which excludes volatile food and energy prices, stayed at 1.8%.
In other words:
We are only going to STEAL 2% of the VALUE of your Money instead of the standard 5% that we normally STEAL from you
Bingo!
Inflation is running 5%-6% where I live. The “official” inflation #’s are pretty bogus...they exclude plenty of items Americans buy every week. Better #’s here:
http://www.shadowstats.com/alternate_data/inflation-charts
So they are stealing more like 5% from you (less the measly interest on your savings of 1.8% or so). Forces people into equities, making for a nice big bubble. The re-fi bubble is coming back too...plenty of radio spots for “Do a cash-out re-fi now!!”
I’ve noticed that the price of food certainly has gone up.
Check this inflation calculator out.
http://www.in2013dollars.com/1999-dollars-in-2018?amount=40000