The Fed wants investors to be as unconcerned as the central bank is about inflation. Even though year over year consumer price inflation is above its target, the Fed chose in its latest press conference to claim the 2.1 percent YOY increase in prices paid merely represented “noisy” readings in the inflation gauge. However, the truth is that rising prices are a direct result of years’ worth of zero percent interest rates and $3.5 trillion in money printing provided courtesy of both Banana Ben Bernanke and the Counterfeiting Queen, Janet Yellen.
It makes no difference to Ms. Yellen that price increases in the major inflation categories are rising above the Fed’s target. For example: Food at Home is up 2.5 percent; Energy went up 3.3 percent; Shelter rising at 2.9 percent; Medical Care Services up 3.0 percent, and Transportation Services climbing 3.1 percent. But somehow the widely dispersed increases in year over year inflation, which are already far above the Fed’s target, are being summarily dismissed as “noise” by our central bank. In the spirit of today’s central bankers, inflation is seen not only as a dear friend, but one that they never seem able to recognize face to face.
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