Archive for the ‘Inflation Rate’ tag
CIBC’s Rubin Sees U.S. Inflation Hitting 6%
Headline inflation in the United States could be
headed as high as 6% before the end of the year, CIBC chief economist
Jeff Rubin warns in a forecast published Wednesday.
“We haven’t seen a 6% CPI inflation rate posted in
the U.S. since 1990 and even then only briefly for four months,” wrote
Rubin. “You’ve got to go back to 1982, in the midst of the stagflation
that followed the second OPEC oil shock, to see …”
Fed’s Stern Says Fed Can’t Wait for End of Crisis to Raise Rates
Speaking in an interview with Bloomberg on Friday, Minneapolis Federal
Reserve President Gary Stern (voter) said that the Federal Reserve
can’t wait for the end of the crisis to raise rates.
“I worry about the prospects for inflation, the headline inflation
rate is clearly too high,” said Stern.
Stern noted that the Fed is well positioned for a downside risk to
growth. He commented that the current credit crisis was reminiscent of
the early 1990s.
Fed’s Bernanke Sees Inflation Risk Rising
Speaking at a Harvard commencement address, Bernanke
said overall inflation is significantly higher than he would like, but
less than the 1970s-style stagflation.
The overall inflation rate has averaged about 3.5% over the past four
quarters, significantly higher than we would like but much less than the
double-digit rates that inflation reached in the mid-1970s and then again
in 1980,” Bernanke said in his prepared remarks.