Fed's Kohn says recent inflation data "troubling"

http://news.yahoo.com/s/nm/20060608/bs_nm/economy_fed_kohn_inflaiton_dc_2

Fed's Kohn says recent inflation data "troubling"

Thu Jun 8, 11:30 AM ET

Federal Reserve Board Governor Donald Kohn said on Thursday that rising prices had raised an inflation "warning flag" that demanded attention, in the latest hawkish remarks from central bank policymakers.

"Price stability is important and I have found the recent inflation data somewhat troubling," Kohn told the Senate Banking Committee at a hearing on his nomination to be the Fed's vice chairman.

"They are backward-looking ... but they were higher than I had anticipated and that raises a warning flag that something might be in train," he said.

(snip)

"I think people are reacting to some extent to the energy price situation. The economy is facing a somewhat more difficult situation right now, because of the rise in energy prices, which has both tended to raise inflation and also tended to damp activity going forward," he said.

(snip)

link: http://news.yahoo.com/s/nm/20060608/bs_nm/economy_fed_kohn_inflaiton_dc_2

Head to the gas pump, to the grocery store, check yer local tax bill, and compare this data to wages...what a "NO SHIT, SHERLOCK" assessment!

room---the $10 trillion federal debt, since that might cause people to point an accusing finger at BushCo and their mismanagement of the war and the economy. Better to blame "inflation" as if it appeared by magic. :crazy:

I really think would be more than stupid to raise interest rates again when people are having a hard time paying their heating bills and other costs that have risen with the increased price of oil. Good way to bring the economy to a screeching halt, cause employers to layoff employees and throw people out on the streets homeless.

snip: "At this stage, we have to acknowledge that ... yes, the economy is slowing down and that will help to dampen inflation pressures, but at the same time, there are some danger signs out there that we need to be quite attentive to," he said.

blah, blah, blah, what a sweet talking bullshitter. :spank:

that's rather unusual isn't it?

isn't it amazing how inflation just flew up but we haven't heard by how much???