Buy the rumour. Sell the news. My guess is they don’t at their September meeting - just a hunch. Then everyone says the fed never does anything at any october meeting before the election (as to not sway things one way or the other). So my guess is december at earliest. More inflation coming for things that are necessary (food, gas) unfortunately. Fed doesn’t realize this inflation somehow and thinks there is no inflation based on other factors. I guess if you go by the price of a 50 inch lcd, there is no inflation - although we can’t eat televisions.
-——Fed doesn’t realize this inflation somehow -——
i would argue otherwise. I would argue the Fed and all in Washington know that there is only one way to eliminate the debt and that is to devalue the currency such that the debt is reduced to manageable levels.
The strategy is to manage the inflation to some agreed level considered to be palatable by the public. The same problem exists all over the world and there is international consensus. The problems in Europe have temporarily upset that strategy here because money fleeing the € has strengthened the US$.
The $ devaluation and resultant rise in prices will continue however for a very long time.
The ultimate result and possible hastening of the devaluation rate may result from the collapse of the € and the substitution of a new currency backed by gold. The gold standard will be welcomed by a public worn out by the disaster that is the fiat currencies
Inflation is a general rise in prices not just this or that sector. With housing and construction on the floor being delivered Last Rites there is no inflation.