Fed's Hoenig: Serious Inflation Risks
Calculated Risk (Free subscription) | 05/07/2008
From Bloomberg: Fed's Hoenig Says `Serious' Inflation Risk May Prompt Rate Hike ``There is a significant risk that higher inflation will become embedded in the economy and require significant monetary policy tightening to reduce it,'' Hoenig said in the prepared text of a speech in Denver. Consumers are gaining an ``inflation psychology to an extent that I have not seen since the 1970s and early 1980s.''...
