Inflation Rears Its Ugly Head

June 22nd, 2014 12:25 pm | by John Jansen |

Janet Yellen at her press conference last week  dismissed concerns about higher inflation reading as “noise “.  The Business Insider blog has a compendium of street research pieces which all comment on the nascent inflation problem and its possible impact on FOMC policy. For now the Fed is firmly focused on employment and is paying less attention to inflation.

The labor market remains less than robust and wage gains are stagnant.Until we see consistent wage gains which would foster spending which fosters revenue and net income and then the virtuous cycle fulfills itself via business investment it is hard to imagine that we get a sustained uptick in inflation.

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