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The Fed exists to inflate.(Between The Lines)
ITEM: The Dow Jones Newswire for March 17, headlined "February's Consumer Prices Show Tame Inflation," reported: "The growth of" U.S. consumer prices slowed last month as prices of energy and housing moderated, suggesting the global economic recovery isn't stoking inflation." The Consumer Price Index "rose 0.3% in February, slowing from a 0.5% increase in January...." These statistics "also validated the Federal Reserve's judgment that inflation will stay low this year, giving the central bank the freedom to keep interest rates low."
BETWEEN THE LINES: In this report, and far too many others, the difference between cause and effect is confused. Inflation, properly defined, is an increase in the supply of money and credit in the economy. Yet as the distinguished Austrian economist Ludwig von Mises once explained: "What many people ... call inflation or deflation is no longer the great increase or decline in the supply of money, but its inexorable consequences, the general tendency toward a rise or fall in commodity prices and wage rates."
Congressman Ron Paul (R-Texas), who sits on the domestic monetary policy subcommittee, observed not long ago that Alan Greenspan and other policymakers of the Fed have "more than doubled the M3 money supply in less than ten years." However, running more Federal Reserve notes off the printing presses does not make Americans richer--it dilutes purchasing power. Since the Fed was created, notes Lew Rockwell, the ...
- PPI tumbles, ending worries that Fed might tighten before November elections....
- Magazine article from: The Bond Buyer Davies, Stephen A. October 14, 1994 700+ words
...government's wholesale price index for September yesterday...pipeline and that Fed officials will raise...that the producer price index tumbled 0.5...but inevitable. Fed officials themselves...in the September price index was a 1.1% plunge...
- PPI falls again in October, but the market can't rest easy about Fed,...
- Magazine article from: The Bond Buyer Davies, Stephen A. November 11, 1994 700+ words
...reached 6.01%. "The Fed is looking ahead to 1995...Co. "As long as the Fed sees the economy continuing...the broader consumer price index that is considered a...months, the intermediate price index for wholesale goods was...to be on the minds of Fed officials when they meet...
- OBSERVER: RISE IN FED INTEREST RATE WEAKENS STOCK PRICE INDEX.
- News wire article from: ANT - LKBN ANTARA (Indonesia) September 6, 2005 700+ words
...The composite stock price index is predicted to keep...the US Central Bank (FED) plans to lift its interest...according to Matram. The FED step will further lower...explained. To counter the FED decision to raise its...The composite stock price index on the stock market here...
- Fed rate increase worries fade as PPI shows inflation in check. (Federal...
- Magazine article from: The Bond Buyer Davies, Stephen A. January 13, 1994 700+ words
...figures, statements by various Fed officials expressing confidence...he is still looking for the Fed to raise the federal funds rate...who worry that a shift by the Fed will also raise long-term...the release of the consumer price index for December, a broader measure...
- Tame Dec. CPI Won't Stop Fed.(consumer price index)(Brief Article)
- Newspaper article from: Kiplinger Business Forecasts Idaszak, Jerome January 18, 2006 700+ words
...let the mild December Consumer Price Index (CPI) fool you"inflation...energy prices, remains above the Fed's comfort zone. December...2% annual increase. The Fed typically doesn't like to...likely to bolster those in the Fed that support more rate hikes...
- The Chicago Tribune Bill Barnhart Market Report column: Declining price index...
- Newspaper article from: Chicago Tribune (Chicago, IL) May 15, 2007 700+ words
...s a chance the main consumer price index growth rate will come in higher...setting interest rates, the Fed primarily watches core inflation...services as well as wages, the Fed reasons. A declining core inflation...report, will encourage the Fed not to hike interest rates soon...
- Thank PCE for 'Measured' Rise in Interest Rates: A wonkish acronym no more, the...
- Magazine article from: US Banker September 1, 2004 700+ words
...did it displace the consumer price index (CPI) as the metric of choice...effect is that since 2000 the Fed has relied on a metric that...growing price momentum. "The Fed doesn't want to kill off the...economists, that a neutral Fed funds rate would be at about...
- Unemployment rate still 5.2%: April numbers include CPI increasing 3.5 percent:...
- Magazine article from: Wood Digest Schulzinger, Jacob July 1, 2005 700+ words
...many surprising statistics, which is highly representative of this year's overall numbers. Consumer prices The Consumer Price Index (CPI) for April was 194.6 and showed a 3.5 percent increase from the previous year and 0.6 percent above the March...
- Producer price index sags on cheap tobacco; report fosters expectations of...
- Magazine article from: The Bond Buyer Patterson, Dean September 13, 1993 700+ words
...the government's producer price index to plunge unexpectedly in...Labor Department said the price index dropped a seasonally-adjusted...year-over-year consumer price index at the end of this year...I don't foresee the Fed raising the fed funds rate...
- Consumer Price Index Down in April.
- News wire article from: Knight Ridder/Tribune Business News May 17, 2003 700+ words
...April's Consumer Price Index fell 0.3 percent...For its part, the Fed has tried to spark the...clouding the economy. But Fed officials have also vowed...pressure for another Fed rate cut, said Maury...Atlanta's Consumer Price Index has risen just 2 percent...
Source: HighBeam Research, The Fed exists to inflate.(Between The Lines)