Inflation rises to Fed's 2 percent target for first time in 5 years

Usury.

good post by Kashkari on why he wanted rates to stay steady from February

quote:

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While the FOMC wants to avoid making forecast errors whenever possible, to the extent that we make them, I would think we’d want our errors to be equally too high and too low. Yet, over the past five years, 100 percent of the medium-term inflation forecasts (midpoints) in the FOMC’s Summary of Economic Projections have been too high: We keep predicting that inflation is around the corner. How can one explain the FOMC repeatedly making these one-sided errors? One-sided errors are indeed rational if the consequences are asymmetric.

For example, if you are driving down the highway alongside a cliff, you will err by steering away from the cliff, because even one error in the other direction will cause you to fly over the cliff. In a monetary policy context, I believe the FOMC is doing the same thing: Based on our actions rather than our words, we are treating 2 percent as a ceiling rather than a target. I am not necessarily opposed to having an inflation ceiling. The European Central Bank has a 2 percent ceiling instead of a symmetric target.

However, I am opposed to stating we have a target but then behaving as though it were a ceiling.

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(paragraph breaks added by me)

Doubt I'll see a 2% pay increase

Yep, for the last five years the Fed has artificially kept inflation at zero to make Obama's "recovery" look stronger than it actually was.

Now that we actually see signs of REAL recovery, inflation needed to be corrected.

I agree. I found it awfully funny you took that position. It's honorable from a basic human decency perspective, and I applaud you for that. It just never reconciled with your professed free market conservatism. But I guess if you need to depart to a more liberal position, you picked one that had some redeeming value. But from that point on, I read your free market posts as 80% free market, the other 20% fungible.

I never have professed to be an anarcho capitalist on here. So I don't know where you are going with that inane strawman.

Pls no

It's not a strawman, it's an observation. And it isn't intended to insult. Actually if I pay attention to 80% of what you post and stipulate a lot of the 80% is well thought out, you should take that as a compliment coming from me. I'm a fan of free markets, I'm not a fan of immoral behavior by large financial institutions. Although as I've mentioned on another thread, I try to copy JP Morgan Chase on precious metal trades. Can't beat them, join them. I am a true Christian, which is to say very, very imperfect, and I have a fair amount of profit motive, if left unchecked, quickly goes to greed. I am what I am.