Several headlines yesterday highlighted the Federal Reserve’s emphasis on inflation after announcing no policy change in the Fed Funds rate following its June FOMC meeting. But reports of the Fed’s inflation concerns appear overblown as there was no action attached to it.
Evidence of a significant elevation in inflation was right there for the Fed to see back in September when it chose to embark on an historically aggressive easing campaign. Just because it chose to ignore inflation or at least place it on the back burner to worry about on another day and deal with the more immediate concerns of a recession doesn’t mean it wasn’t there.
