Fed to stick with low rates, despite oil price rise

[Viva_La_Revolution]

Source: Reuters

(Reuters) - Two of the Federal Reserve's most powerful officials said on Monday the U.S. central bank should stick to its super-easy monetary policy, arguing inflation is not a threat and unemployment remains too high.

Underlying U.S. inflation trends are subdued and long-term price expectations are contained, despite rising commodity costs, Janet Yellen, the Fed's influential Vice Chair, told the Economic Club of New York.

She argued the recent run-up in energy prices was more of a damper on consumer spending than an inflation risk, saying broad-based price increases are unlikely without substantial gains in wages, which have been largely stagnant.

"I anticipate that recent increases in commodity prices are likely to have only transitory effects on headline inflation," said Yellen, echoing remarks from Fed Chairman Ben Bernanke last week.

Read more: http://www.reuters.com/article/2011/04/11/us-usa-fed-idUSTRE73A6M020110411?WT.tsrc=Social%20Media&WT.z_smid=twtr-reuters_%20com&WT.z_smid_dest=Twitter

[JDPriestly]

1. Inflation trends are subdued because people don't have jobs

and therefore no money to spend. Inflation trends are subdued because there is little demand. This is not good. The economy is being very badly mismanaged by all sides.

The wealthy have to pay higher taxes and give up some of their money. Everyone including them will suffer if they don't. It does not take a genius to figure that out.

[Pale Blue Dot]

2. Inflation tends aren't even subdued.

It's, at best, wishful thinking and manipulated data. At worst, it's just a total lie.

I believe the worst.