The Federal Reserve is Playing a Dangerous Game With Inflation, CPI Inflation are Rising

Good day folks, Federal reserve manage the inflation well? The Fed is Playing a Dangerous Game With Inflation, In the last few months, something major has begun. That something is inflation.

Regardless of what the CPI inflation measure tells you, the core items that affect most consumers' pockets are healthcare, housing (rental or home prices), and food. All of these are rising in price.

Take a stroll down the food aisles at the grocery store…Turkey has risen 34% year over year from its January 2013 price. Boneless chicken breasts are up 11%. Grapefruits are up 13%. Strawberries are up 39%. Spaghetti and macaronic is up 8.4%.

As far as housing goes, prices are beginning to move sharply upwards. The homeowners equivalent rent index rose 2.5% from its January 2013 levels. This is a sharper increase from the 2% year over year changes of 2011 and 2012.

Healthcare costs are rising sharply as well. And yet, despite this, the Fed believes that inflation is too low. 

Fed optimistic on growth, wary of bubbles, Janet Yellen and her supporters are optimistic, but believe the economy has a long way to go

The Fed Chairwoman Janet Yellen and her core supporters on the Fed's policy committee "are optimistic the economy is on the mend, but believe it has a long way to go," said Jim Glassman, economist at J.P. Morgan Chase.

Somehow, This core majority on the Fed don't think the unemployment rate is telling the whole story on the economy. They see inflation as running too low, signaling "the economy is not there," Glassman said

Source: marketwatch