same article: "The waning intensity of their searches suggests that they may not be putting as much downward pressures on wages -- and inflation -- as some macroeconomic models assume, said James Stock, a professor of economics at Harvard University in Cambridge, Massachusetts. That doesnât mean the Fed should start worrying about accelerating prices, according to Stock. âWe still have a very weak economy,â he said. âDisinflation strikes me as a much greater risk than inflation at the moment.â " 'professor of economics at Harvard University'...
of course, the fed wants inflation. the higher the better. they are actually doing everything they can to prevent economy from DEFLATION. because there are MASSIVE deflationary pressures due to... TECHNOLOGY. humanity can produce 1000x more than 50 years ago with a fraction of human labour. the real cost of producing oil is 1% of the price at the gas station. Food, clothing, electricity- could cost 1/50 of current prices. but it would destroy the monetary system. thats why governments aroung the globe will put taxes upon taxes, upon taxes. global warming tax... another huge attempt to push UP prices. there are vast, super vast reserves of oil, natural gas around the world. coal, unlimited geothermal and sun energy. but the corporations will do EVERYTHING : -PRO WAR -PRO scarcity -PRO fear -PRO status quo - no revolutionary technologies are allowed. ridiculed massively
If commodity prices go down the fed screams deflation therefore will keep rates low. If commodity prices surge the fed screams that its irrelevant to them so will keep rates low.
Good article on inflation, QE, etc. The Fed and its feckless shills on here who rely on core inflation and the output gap should take note. http://financialsense.com/contributors/john-mauldin/the-curve-in-the-road