Reply #18: The Fed likes to tout the inflation numbers. [View All]

[OllieLotte]

The claim is that inflation is low. Inferring that people are not being harmed by higher prices. The reality is that some people have the worst of both worlds due to the Fed. An reasonable example would be a person that was semi-retired that owned their own home. They have a modest amount in the bank, which is why they work part time, hoping to make it stretch.

Their healthcare, food and energy costs have jumped considerably which would have a real impact. His home has fallen in value. They receive virtually nothing from the bank for there investment in CDs. They haven't seen a raise in four years.

The Fed claims that inflation is low, so "no harm, no foul". I would say that due to all of the manipulation by the Fed that this person is far worse of than if we had run away inflation. If we were having inflation similar to the 70's - their home would be worth more, CD's would be earning a reasonable return and they would be receiving a yearly raise.