NOTHING COSTS MORE THAN IT USED TO:

Inflation tip: watch money supply (David R. Francis, 6/05/06, CS Monitor)

he recent negative reaction of the stock market to what's seen as a new threat of inflation and thus higher interest rates is perhaps exaggerated. "We don't think the Fed is dramatically off course," Professor McCallum says.

His "we" refers to the Shadow Open Market Committee (SOMC), a small group of private economists founded in 1973 to evaluate the policy choices and actions of the Federal Open Market Committee (FOMC), the Fed's policymaking group.