Fed may need to let inflation run hot to meet goals: Evans (here it comes!)

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[Red in Blue PA]

NEW YORK (Reuters) - The Federal Reserve should be willing to let inflation temporarily run above its target level so as to more quickly bring the economy back to health, a top Fed official said on Friday, even as a second policymaker signaled the very idea left him cold.

The debate, between Chicago Fed President Charles Evans and Philadelphia Fed President Charles Plosser, underscored a fundamental disagreement over the central bank's optimal approach to policy under new Fed Chair Janet Yellen.

To Evans, one of the Fed's most dovish policymakers, allowing inflation to run above the Fed's 2-percent target would be a small price to pay for bringing the U.S. economy back to full employment quickly, and could even signal the Fed's commitment to making good on its goals.

To Plosser, an ardent policy hawk, letting inflation rise above the target would call into question the Fed's commitment to its goals, undermining its policy effectiveness

[GraceG]

Well I HAD plans this summer, I think I will spend this spring checking on sales and copupons for canned goods...

Maybe invest in some good hiking gear, gotta go over my plan to get out of the city under cover of night and make it back to my Parent’s farm...

[Wyatt's Torch]

Wait...... I read on Free Republic that real inflation is 20%+ not the made up sub 2% number so this article is obviously bogus.......

[Georgia Girl 2]

“the Fed’s 2-percent target would be a small price to pay for bringing the U.S. economy back to full employment quickly, “

Because everyone deserves to work 29 hours per week.

[Don Corleone]

In what idiotic school of economics does Inflation reap a benefit for the citizens? For the Government, yes! They can pay off their debt with cheaper money. For everyone else, not so much. Even the government suffers if they go down that rabbit hole. Their costs go up too.

[Red in Blue PA]

Allowing inflation to just happen is like wrestling an alligator.....it may go well for the first few seconds, but you should have no illusions of having control.

[Noumenon]

Grace, you’d best be out of there ahead of the shock front. Just sayin’.

Trouble’s coming, that’s for sure.

[TomGuy]

Hyper-inflation is what helped cause Carter’s defeat.

Obama has managed to keep hyper-inflation down, or at least out of sight. He can only fend it off so long. When it does hit, it will make Carter’s hyper-inflation look good, in comparison.

[Red in Blue PA]

Agree 100%. It is coming; the only question is when.

[BfloGuy]

The Federal Reserve should be willing to let inflation temporarily run above its target level so as to more quickly bring the economy back to health

Oh, how I wish more people could see the inanity of insisting that we must devalue the currency, rob people's savings, make the rich richer, make the poor poorer, and entice more into debt.

What sort of idiot can think that's what it takes to create prosperity.

[cripplecreek]

Kinda like trying to burn down just the ground floor of a house.

[TomGuy]

I read on Free Republic that real inflation is 20%+ not the made up sub 2% number so this article is obviously bogus

That is why food and fuel prices are typically excluded from the 'inflation rate'.

Neat, huh.

[prof.h.mandingo]

I guess you eat DVR’s and sheet rock. The 20% number is silly and you know better. But the problem is that essentials are in fact going up and everyone but you seem to know it. Is it 20%? Of course not but it is more than 2% for items that people have to have. Gasoline is considered “volatile” and it is. But it is generally higher than lower over time. It does dip and you are correct to point out that fact. The problem is the dips are fewer and farther between. If it is higher for 9 months I do not recoup that in three months. Plus cereals and other grains have not appreciably gone down.
I don't have charts and other crap. I have my lighter wallet, buying essentially the same crap I have purchased over the last few years. Packages are smaller for the same money. You have said this is accounted for but I don't see it. If the portion is smaller and the price is the same, how is that not an increase in price? And it's more than 2%. I am hard pressed to find food prices lower to any significant degree.
Taxes are higher, my wage is just about the same and you want me to think everything is great. Sorry I don't buy it.

[DJ MacWoW]

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[GraceG]

Grace, you’d best be out of there ahead of the shock front. Just sayin’.

Trouble’s coming, that’s for sure.

I have Preps but I will not tell ANYONE what they are.

[tet68]

Probably what this means is inflation is going to
run wild and there isn’t any thing they can do to
stop it.

[BenLurkin]

Those stupid bastards!

[SVTCobra03]

Real inflation is 9%. Real unemployment is 20%.

[Wyatt's Torch]

Link to your proof? Thanks in advance.

[Tenega]

Went to the Benjamin Moore paint outlet down the block in NYC last week to get one gallon of latex gloss white paint for remodeling the bathroom. It was bad enough when the shelf price tag for the stuff read $67. Sheesh! But when I went to check out, the clerk matter-of-factly said that’ll be $100 and change. Price hike, wouldn’t you know. When I protested, he grudgingly agreed to give it to me for the shelf price, and then promptly tore off those stickers to prevent another sale at that price.

Oh no. There’s not much inflation. Sure.