Charles Prosser of the Federal Reserve bank of Philedelphia is worried about 2.5% inflation in 2011.
Federal Reserve Bank of Philadelphia President Charles Plosser said prices may rise 2.5 percent in 2011, a rate well above central bankers’ preferred range, and cautioned against complacency on inflation.
“The economy may be at greater risk of inflation than the conventional wisdom indicates,” Plosser said in a speech yesterday in New York. “While inflation expectations appear to remain anchored, we should not become sanguine about our credibility. It can be easily lost.”
The bank president’s inflation forecast for 2011 exceeds central bank officials’ long-run preferred range of 1.7 percent to 2 percent, and contrasts with the concerns of some officials and economists that the economic slump may provoke a broad decline in prices.
Good grief, the danger is it being much higher than that.
added 5/22 @ 22:34
Glenn Reynolds comments on Plossers inflation concerns…
I suspect that he’s grossly underestimating the problem. But I hope I’m wrong.
Yea, no fooling.
added 5/22 @ 23:08
Jim Rogers agrees… or more than likely, Glenn and I agree with Jim.
Quantitative easing is money printing will cause hyper inflation and the collapse of the dollar …
The stock market may hit new lows this year or the next as the current rally has been largely caused by the money printed by central banks and fundamental problems remain unsolved, legendary investor Jim Rogers told CNBC Wednesday
jim Rogers opinions concord with those of renowned bear Marc Faber aka doctor Doom , who told CNBC last week that the rises in share prices did not mean the world was embarking on a path of sustainable economic growth.
Yikes, where’s my happy pill?
