NEW YORK (CNN/Money) - Suddenly, everyone in the world is SO much smarter than the Federal Reserve.
How could these dumb bunnies at the Fed be worried about deflation until early this year?
How could they not see that prices would start rising?
How could they get so far "behind the curve?"
Monday morning quarterbacking at its finest. The year-over-year inflation rate has jumped up a bit. Far from wringing their hands, officials at the Fed are probably happy to see some pricing power and are hoping the lift in the economy lasts, as it appears it will.
The world is still very fragile and vulnerable. Witness stocks selling off as Iraq and Turkey get hit by blasts, and the latest New Yorker Magazine piece rocks the news world with allegations the Pentagon knew what was going on in Iraq with prisoner abuse.
Today Fed governor Ben Bernanke gives a speech on why the Fed moves gradually on rates. Make no mistake -- this has to be a message from the Fed that big fast rate hikes aren't coming.
Kathleen Hays anchors CNN Money Morning and The FlipSide, airing Monday to Friday on CNNfn. As part of CNN's Business News team, she also contributes to Lou Dobbs Tonight.
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