All Commentary
Wednesday, September 22, 2010

Fed Frets Inflation Too Low

“Officials at the Federal Reserve signaled on Tuesday for the first time that they were worried that the slow-moving economic recovery could be undermined by very low rates of inflation, and hinted strongly that it might resume buying vast amounts of government debt to spur the recovery…. It said that underlying inflation levels, which have hovered at about half the Fed’s 2 percent target rate, were ‘somewhat below those the committee judges most consistent, over the longer run, with its mandate to promote maximum employment and price stability.’” (New York Times)

Inflation is too low!

FEE Timely Classic
“The Fed Should Inflate to End the Financial Crisis? It Just Ain’t So!” by Ivan Pongracic Jr.