One day after the Fed announced a new program of quantitative easing (QE3), the BLS reported that headline inflation spiked to an annual rate of 7.44 percent in August. Does that mean that QE3 was a mistake?
Superficially, it might seem so. After all, the announced
justification for QE3 was that both parts of the Fed’s dual
mandate—unemployment and inflation—have been running well below target.
If one of them, inflation, is now above target, that could be taken as a
sign for cautious watching and waiting, not a bold new program of
monetary stimulus. But not so fast. >>>Read more
Follow this link to view or download a classroom-ready slideshow with charts of all the latest inflation data.