The Fed: Really Considering Inflation As A Fix?

Posted by on Oct 8, 2010

Apparently the Fed is considering inflation as a fix for the economy.

I think this is All Talk No Trousers – a bit of blustering and posturing going on. The Fed spent the past three decades getting inflation low and keeping it there. Any gain from higher inflation would be temporary.

I suspect this talk is coming from certain quarters to try and push colleagues towards more stimulus. Also, they don’t want the Fed to be seen as out of ammunition, as it would further spook the markets and the economy as a whole.

It’s all about perception, isn’t it…