Good morning,
The eternal mandate of the Federal Reserve is to boost employment while keeping inflation under control. So far it has been easy to focus on efforts to stimulate the former as the latter has been naturally tamed because of the recession. However, CPI tells us this morning than inflation rose more than twice the forecast last month to 0.50%. This will make it even harder for the Fed to continue to keep rates low without the risk of pushing inflation higher.
It is also hard for the Fed to continue to act as an independent, non partisan institution when comments arise that any further monetary policy intervention by Fed President Ben Bernanke’s (a registered Republican) could be Treason.
Have a good weekend.
Rod Gonzalez
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