“CPI inflation running at 0.4% in February provides a worrisome reminder of the potential fallout of historically loose monetary policy that the Fed has been running for the past three and a half years.
“There are two consequences of loose monetary policy – the risk of higher inflation and the problem of price volatility. Threats continue to loom regarding the value of the dollar, energy prices, future interest rates, and the inflation-adjusted capital gains tax.
“Throw in risks on the fiscal side of the policy equation – such as unprecedented levels of government spending, and the threats and realities of increased tax and regulatory burdens – and entrepreneurs, investors and business managers continue to face too many questions for the good of the economy.”
Friday, March 16, 2012
SBE Council Economist on Latest Inflation Numbers and Fed Policy
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: