Reply #24: Clear-cut Cluelessness: Not clear why food, fuel costs spiked: Fed's Kohn [View All]

[UpInArms]

http://www.marketwatch.com/news/story/cause-jump-commodity-prices-not/story.aspx?guid=%7B8C746386%2D38F9%2D4310%2D8A9A%2D6C1EC97B0CBC%7D

WASHINGTON (MarketWatch) -- The cause of the spike in food prices and energy costs this year remains a mystery, but the increases seen to date are not yet a full-blown emergency, Federal Reserve Vice-Chairman Donald Kohn told a German audience Thursday.

Speaking behind closed doors at the International Research Forum on Monetary Policy sponsored by the European Central Bank in Frankfurt, Kohn said higher headline rates of inflation popping up around the globe "have shown only a few tentative signs of embedding themselves in core inflation or in longer-term inflation expectations."

But the No. 2 Fed official said central banks nonetheless "must monitor the situation carefully for signs that the increases in relative prices globally do not generate persistently higher inflation."

Kohn didn't address head-on the divergent postures of the Fed and the European Central Bank toward the threat of inflation. A copy of his remarks was released in Washington.

...more...

Con-man deluxe!

Who wrote this stupid speech for this bubbleheaded POS?