Fed will want to see robust inflation before acting

Fed will want to see robust inflation before acting. Consumers have been complaining about inflation for quite some time, not least because the price of anything normal people spend money on has increased. In such cases the hedonics employed by the Fed offer cold comfort. As inflation shows up in official statistics, the Fed's overt courting of inflation appears to be finally seeing results. While this will put pressure on the Fed to follow tapering with a series of incremental interest rate hikes, it is also worth remembering that the Bank of England has had inflation figures coming in above its target for a number of years and is only now beginning to talk about raising interest rates. The Fed will probably want to see inflation figures remain robust before making an big decision.


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