All the FOMC stated, through their speak, is that Inflation is on the rise and that the economy is limp'n along. FED SPEAK warn's of higher Oil and Food prices, high unemployment for a continued period, slow recovery and housing prices are at risk for Deflation still.
Good point on Stagflation. Energy Rising, Agi Rising, and Medical Expenses rising, as Home values still fall, Unemployment still high (Soon to go higher as States are forced to lay off in 100,000s thousands) and Big Ticket Items falling in price...along with W2 wages not moving much.....does sound like Stagflation..... Auto sales are up...but GM had 0 interest for life of the dang car and other autos also had zero down, zero interest for 6 years or something crazy like that. Bottom line, the Consumer is feeling good for false reasons, because they have been in "Cabin Fever Mode". And the consumer can't stand reality so they are out spending money they don't have on credit that they paid down over the last two years. So, once again,the cycle is going to continue and Debt is gona rise with the average house hold. Spring is gona be a wake up call.