http://www.cnbc.com/2016/10/17/traders-watching-inflation-for-clues-on-growth-fed-policy.html
As the September CPI and third- quarter earnings draws inched closer to its due dates, eyes were on inflation to determine whether the U.S. Federal Reserve will increases rates. The central bank sees it’s target of full U.S. employment close in reach while inflation numbers have already exceeded the 2% target rate, but there’s concerns that low interest rates and the economy becoming vulnerable as a result. It’s expected that these higher inflation rates will cause a decrease in real wages as a result of a still staggering economy lacking a growth.
Wherever the economy is headed in the future we will either blame,or praise the ingenuity of the US government. It's a blame game at this point. Question is what's the outcome when the Fed comes to a desicion on judgment day?
ReplyDeleteI think this is something to keep a close eye on. The Fed could really let the inflation rates rise, and get a little out of control.
ReplyDeleteTrying to maintain the high pressure economy might benefit the economy in the short run but tend to be harmful in the long run.
ReplyDeleteMaking either decision could be looked at as something huge we did in the past that benefited our future or something that really killed our economy. Trying to be flexible is good and keep an eye on the numbers.
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