Inflation In The US Is Starting To Show Up

Inflation In The US Is Starting To Show Up

$DIA, $SPY, $QQQ, $VXX

Former US Fed Chairman Alan Greenspan said he sees inflation re-emerging as an issue for the economy and that there should be greater concern about it.

Consumer prices in the US, excluding food and fuel, increased more than forecast in February for a 2nd month running, signaling the return of prices pressures after Crude Oil prices fell  and the USD rose.

The US rate-setting FOMC (Federal Open Market Committee), in explaining its decision to hold steady the benchmark interest rate Wednesday, said inflation has picked up in recent months, but market-based measures of inflation compensation are still low.

“The CPI is not the ideal, I should say core CPI, even that is not the ideal statistic to use. But I think we’re going to watch the pricing issue coming back,” Mr. Greenspan said in a TV interview Thursday.

When asked if concern about inflation should be deepening, Mr. Greenspan said, “very much so.”

The Fed’s preferred gauge of the indicator, which is the US Commerce Department’s personal consumption expenditures measure, has not matched the central bank’s 2% target since April 2012.

US major stock market indexes finished higher Thursday at: DJIA +155.73 at 17481.49, NAS Comp +11.01 at 4774.97, S&P 500 +13.37 at 2040.59

Volume: Trade was heavy with over 1.1-B/shares exchanged on the NYSE

• NAS Comp -4.6% YTD
• Russell 2000 -4.0% YTD
• S&P 500 -0.2% YTD
• DJIA +0.3% YTD

Stay tuned…

Paul Ebeling

HeffX-LTN

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