Inflation's next front is retailers as costs rise
By ELLEN SIMON, AP Business Writer
27 July 2008
NEW YORK - Coming to a store near you: Even higher prices.
And our weapon against inflation? The Fed.
The Fed's between a rock & a hard place, and has been for some time now.
To provide economic stimulus, they need to cut the prime rate, which they've done more than a few times since January. Economic stimulus? Low rates!
On the other hand, to combat inflation, they need to raise the rate!
Control inflation? High rates!
More than one Fed Governor has commented on this dilemma this year, and the inflation hawks have won the day the past few months - no new rate cuts to provide economic stimulus.
Me? I have to live in this economy with everyone else.
BUT: when you go the polls in November, remember which Major Party got us into this mess. (Hint: it wasn't the Democrats!)
Have a nice day.
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