Previously, I discussed whether the Fed was paying attention to inflation’s apparent resurgence (“Tame Inflation Just Growled – Is the Fed Listening?”). Today, let’s talk about the box the Fed is in, what its choices are and how the direction chosen would affect bondholders. (more) This article is posted on SeekingAlpha.com »
The Wall Street Journal’s lead article says it all: “Global Price Fears Mount” (By Brian Blackstone and Marcus Walker, January 24, page A-1). Rising inflation concerns have reached the “something must be done” stage. Everywhere except here in the US, that is. Now that anti-inflation actions (i.e., interest rate increases) are being discussed or... »
