April 18, 2013
WHO WILL TELL THE GOLDBUGS?:
The Fed's Bullard thinks inflation is dangerously low (Annalyn Kurtz, April 17, 2013, Forbes)
Cue the flashback to summer 2010. Ben Bernanke and other officials at the Federal Reserve were warning that inflation was approaching dangerous lows, perhaps even flirting with the dreaded "D" word -- deflation. Bernanke gave a key speech in Jackson Hole that August hinting that more Fed stimulus might be in the pipeline. Sure enough, it was. The Fed launched QE2 about two months later.A similar murmur is starting up again: Could inflation be getting too low? St. Louis Fed President James Bullard thinks so."Inflation is pretty low right now, and it's been drifting down," he told reporters at a Levy Economics Institute event Wednesday morning."If it doesn't start to turn around soon, I think we'll have to rethink where we stand on our policy," he added.
Posted by Orrin Judd at April 18, 2013 5:18 AM
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