Fed's Plosser says inflation uncomfortably high

[lobodelmar]

I sent this link to EJ thinking it might be a candidate for the news with anti spin section, mainly because I didn't know where else to post it myself. But here it is in case this didn't make your headlines:

Fed's Plosser says inflation uncomfortably high

Inflation is uncomfortably high and the U.S. central bank needs to remain vigilant about it, Philadelphia Federal Reserve Bank President Charles Plosser said on Tuesday.

http://yahoo.reuters.com/news/articl...mktNews&rpc=44

The article doesn't really say ANYTHING about what the Fed being "vigilant against inflation" really means, does it? What is the point of saying something like this without talking about making necessary changes? I know Charlie Plosser, he's a bright academic mind, but in his new position he can't really talk at length like he could when he was a professor. Still, curious why he said anything at all...

Thoughts?

[fightthepower]

Re: Fed's Plosser says inflation uncomfortably high

The fed is between a rock and a hard place. With housing and manufacturing already in a recession they need to cut rates. But with the dollar at a two year low they need to raise them. Cutting rates will put further pressure on the dollar, raising rates will put the economey into a recession.

[Harry Pottery]

Re: Fed's Plosser says inflation uncomfortably high

The fed is between a rock and a hard place. With housing and manufacturing already in a recession they need to cut rates. But with the dollar at a two year low they need to raise them. Cutting rates will put further pressure on the dollar, raising rates will put the economey into a recession.

That's pretty much the way I see it. I've been saying this for a couple of years now.

I'm honestly beginning to believe that they've created a disaster on the horizon.

So we go further into the second victorian age...

[toddpw]

Re: Fed's Plosser says inflation uncomfortably high

Fed talking about inflation vigilance just means they are warning that they might have to increase rates. I see it as a word to the wise to batten down the hatches and get ready.