“Inflation is coming!” We’ve
heard it for what seems to be forever. Then came the report of the March
leading economic index for March. It increased by 0.8% after rising
0.5% in February. It’s just the latest data point in a series of
indicators that Hugh Johnson of Hugh Johnson Advisors says is evidence
that this time inflation really is coming.
“We’re not talking about 3% or
even 4% inflation,” Johnson told Breakout, “but we are talking about
inflation rates as measured by the consumer price index of say 2.1% in
2014 and 2.3% in 2015. That’s stronger than the consensus and certainly
stronger than Janet Yellen thinks is on the way.”
So what does that mean for Yellen
and a Fed who have kept rates effectively at zero for as long as many
young investors can recall?
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