Quote of the Week

So I start looking at the markets this morning to see what’s going on.

Of course producer prices came in higher than expected. Year over year, they’ve gone up three percent. I wish that were the truth. But after all the adjustments our inflation report has received over decades, inflation is drastically understated.

Either way, that three percent number was the biggest climb since 1991. And you know what Fed Vice Chairman Donald Kohn said?

He said the quote of the week…

“With the information now in hand, it is my judgment that monetary policy appears to be appropriately calibrated for now to promote both rising employment and moderating inflation.”

Is Donald living in a far away land with mythical creatures and no inflation? It sure seems that way if you look at his quote. How can he come close to saying that interest rates (Which are NEGATIVE after inflation) will foster low inflation AND growth?

This just drives me batty. And it furthers the thought that the AG and commodities bull is alive and well.