Submitted by: Donald Hank
We have this gem of an article today from Bloomberg: “Headline inflation is beginning to have a greater influence on monetary policy, but not yet at the Fed,” said Crescenzi, who helps manage $1.2 trillion at Pimco in Newport Beach, California, as executive vice president. The central bank “remains anchored or hinged to the core rate,” which excludes food and energy costs.So, Mr. Bernanke is purposely only considering ‘core’ inflation when judging the overall inflation rate. So, the soaring prices in your energy costs to drive your car and heat your house don’t count. Also not considered are your rapidly increasing food prices. I’m sure for you and I it’s no problem to forego heat and food, right? These are apparently, discretionary items to Mr. Bernanke. |