Fed’s Lacker: Inflation is Coming

Here we go again. Expect a litany of jargon from these Fed heads, trying to prime us to be painted red by a barrage of Federal Reserve hikes. Just the other day, Bullard suggested that low rates might be causing low inflation. Ergo, we should hike them in order to raise inflation.

The fuck?

Has it occurred to any of these brainiacs that the cause of deflation is DEBILITATING DEBT, which causes fiscal spending to be constrained and unproductive? Just a theory of mine.

Lacker in Paris today:

“The recent data on inflation – because they have come in firmer than expected – suggests that upside risks to inflation have increased maybe not significantly, but I think noticeably and materially,” Lacker said at a central banking conference at the Bank of France in Paris.

“We need to take that into consideration,” he said, adding that he expected core inflation firmer this year than last year and close to 2 percent in 2017.

The U.S. central bank said in its Wednesday policy statement that financial market-based measures of expected inflation were low.

“Although recent declines in inflation compensation do give me some pause, I think the evidence indicates that inflation expectations … remain well-anchored,” Lacker said. He cited studies that suggest public expectations of inflation guide actual price changes.

Let’s see if the market really likes the idea of higher rates, or if it was just kidding when it acted like it did for the past 5 weeks.