January 16, 2010

VOLCKER AND REAGAN WON THE WAR...:

Consumer prices fall in 2009: The annual decrease is the first in more than 50 years. Month to month, a slow rise in the inflation indicator increases the likelihood that the Fed will keep interest rates low. (Don Lee, January 16, 2010, LA Times)

Despite growing worries about a future surge in inflation, consumer prices barely budged last month and fell for all of 2009 -- the first annual decline in more than half a century.

The latest report on the consumer price index, released Friday by the Bureau of Labor Statistics, increases the likelihood that Federal Reserve officials at their next meeting later this month will stand pat on their policy of setting interest rates at near zero for "an extended period."


...now the Fed has to stop trying to make the rubble bounce.

Posted by Orrin Judd at January 16, 2010 8:35 AM
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