Yahoo: Fed Rattled by Elusive Inflation…


Image from Yahoo News

On the heels of my post yesterday regarding energy prices and your future, Yahoo posted some news about the Fed being rattled by “elusive” inflation.

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In a zero real rate environment, getting some positive price momentum would be helpful to the Fed.  Unfortunately, energy isn’t cooperating.  A “final” quote from the article:

William Dudley, the influential New York Fed president, hinted at the possible response to a further cooling in prices, saying last month the central bank could run the economy “hot,” keeping rates low longer than what growth and jobs data would have suggested.

Run the economy hot.  That means allow free money to flow more freely, longer.  Still.

Once again, if we think about the impact of inflation (or, deflation) on our business, end users, and suppliers; what does it mean for our marketing, procurement, and investing activities?

How do you think about this? 

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