| if you look at all the core indicators focused on inflation, it seems that the fed might have to continue increasing interest rates more than the market expects.
wholesale prices took an unexpectedly high jump in the latest report - and is evidence that higher energy costs are being absorbed into prices for virtually all consumer products (including food).. this increase is the main reason why the market's been hurting in recent days imo.
at it's not likely that higher interest rates will do much of anything to effect energy costs. i think bernanke should take a chill pill and let some of the trailing data to accumulate before issuing further rate hikes. |