"There's a reason that the price of gold has hit record levels. It's because gold always has been and continues to be a hedge against inflation. And stepped-up inflation, as illustrated in the March CPI numbers released this morning, is here, and continued obliviousness by the Bernanke Fed means that risks for high future inflation continue to mount.
"CPI inflation came in at 0.5% in March, annualized inflation has climbed to 4.2% for the past six months, and over the past three months, the annualized rate came in at 5.6%. Some will say that we need not worry about this recent inflation bout because it's largely about energy. But the last time I checked, small businesses and consumers have to find ways to deal with rising energy costs. In addition, part of the rise in oil prices is about the historically loose monetary policy the Fed has been running for two-and-a-half years. After all, oil is priced in dollars.
"Inflation is here. Could someone please tell Ben Bernanke and his Fed colleagues?"
Friday, April 15, 2011
SBE Council Economist on Latest Inflation Numbers
Raymond J. Keating, chief economist for the Small Business & Entrepreneurship Council (SBE Council), offered the following statement in reaction to the CPI inflation numbers released this morning by the U.S. Bureau of Labor Statistics: