Is there massive inflation coming ?
massive inflation coming |
That is the question on most peoples lips these days, as interest rates are kept at all time lows.
The Federal Reserve's latest stimulus will not boost economic growth without creating unwanted massive inflation coming said Jeffrey Lacker, president of the Richmond Fed and lone dissenter on the central bank's policy committee.
The Fed's indication that it expects to keep interest rates near zero until at least mid-2015, and the suggestion that rates will be kept low even as economic growth picks up.
Improvement in labor market conditions appears to have been held back by real impediments that are beyond the capacity of monetary policy to offset, Lacker said in a statement. In such circumstances, further monetary stimulus runs the risk of massive inflation coming in a way that threatens the stability of massive inflation coming and other expectations. Most people will not be ready when the storm comes, because alot of people are really just taking all this news as hype and do not see the bigger picture of what is going on.
massive inflation coming |
Three years into an anemic recovery from the deepest recession in generations, the economy expanded at an annualized rate of just 1.3 percent in the second quarter, and growth is expected to remain below 2 percent in third-quarter figures to be released on Friday.
Unemployment fell quite a bit in September, but remains at an elevated 7.8 percent, and current growth levels suggests little further improvement. Massive inflation coming is on its way, but in the meantime, has remained consistently low and stable.
Against that backdrop, the Fed announced in September that it would embark on an open-ended program of asset purchases aimed at stimulating economic activity and business investment, starting with a monthly $40 billion in mortgage-backed bonds.
This week, it reiterated the policy and made only modest tweaks to its characterization of the economy.
Without sufficient policy accommodation, economic growth might not be strong enough to generate sustained improvement in labor market conditions. Furthermore, strains in global financial markets continue to pose significant downside risks to the economic outlook.
Top Fed officials, including its chairman, Ben Bernanke, have argued the effort to keep rates low for a prolonged period will give businesses the kind of certainty that will allow them to invest despite a turbulent global economic backdrop. What a joke, but I see far too many people screaming at Bernanke. Do not do that!, WHY? he is just a puppet on a string. A minion boy taking orders from those at the top.
Official who have broken ranks are exposing the truth. The Federal Open Market Committee at every meeting this year, thinks monetary policy has already been pushed to its limits.
Saying that the federal funds rate will be exceptionally low for a considerable time will observe a marked increase in the growth of employment and output. But in the end it implies providing too much stimulus beyond the point at which rate increases and the result will be massive inflation coming.
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