Huh? Did I miss something? Fed's Plosser says inflation remains a big worry. It is another example of talking hawkish and acting dovish. They have talked hawkish too many times to have any credibility left.
If you want to raise the rates go ahead...But don't insult everyone's intelligence by suggesting inflation is a worry. May be they are trying to protect themselves because they know inflation is coming but can't do anything about growth is also slowing down.
"Unfortunately, I expect little progress to be made in reducing core inflation this year or next, and I am skeptical that slower economic growth will help,'' he said.
He did not forecast a recession but told reporters after his speech that ``if something can tip us into recession, the housing market is the biggest risk.''
Going forward, he said rising inflation remains an equally large risk for the U.S. economy and the central bank.
"In taking aggressive action in supporting the economy's eventual return to its trend growth rate, I continue to believe we must not lose sight of the other part of the Fed's dual mandate, which is price stability,'' he said. ``We cannot be confident that a slow-growing economy in 2008 will by itself reduce inflation.''
http://www.cnbc.com/id/23031557
In a related story, how far has the mighty dollar fallen? Now they are starting to accept Euro in NYC! Yes, folks. They are starting to accept Euro. It is still hard to belive this is possible, but this is a story on CNBC.
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