INFLATION AND THE FEDERAL RESERVE
The Fed is targeting inflation and starting to become concerned with recent rises in PPI and CPI. They have made it known that they are targeting a CPI rate of 1.5% to 1.75%. Let us hope that they are successful at achieving inflation in this range for many years to come.
Many problems may beset the economy, but few are as insidious as inflation. We should strive to avoid a rise in inflation and in inflationary psychology because such a psychology creates large dislocations in economic activity. Hoarding, shortages and price gouging are just . . .
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