Wednesday, November 17, 2010

Inflation and the Wayback Machine

Inflation is the lowest since 1957.


So, the Fed is targeting 4% inflation, right? The Fed is also trying to keep interest rates down by their QE2, buying treasuries.

No matter what happens, they can claim they hit one of their goals. The only way they fail is if inflation exceeds 4%. Then they'd have high inflation and higher interest rates.

Stocks pretty flat so far today.

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