"WASHINGTON - With the inflation rate about half of the Federal Reserve's 2.0 percent target, the central bank is facing a major test and some experts wonder whether it will eventually need to ramp up its already aggressive bond buying program."
Funny how mortgage-backed securities somehow turned into bonds. LOL. Am I in 2012?
A lot of foods has doubled Grapes +200% Apples +125% Bananas +100% etc...etc...etc. Gas alone up +25% just this month. Have you been to a Home Depot or Lowe's lately? Household items and supplies have skyrocketed. Two percent???....RIGHT!!!
I make my bi-weekly stop to McDonald's yesterday... food prices are DEFINITELY UP! Gas prices hit the brakes this week and shot back up... I think we see a slow creep of inflation in the next month and then a rapid acceleration into the end of the year.
Minor inflation will fuel the last leg of this market, and then it will crumble once all that free Fed money really hits your store shelves.
Already buying $1 trillion annual and M2 declined in Q1-2013 by $55 Billion because the money multiplier lost 7.7%. The Federal Reserve can not control the decline in the money multiplier no matter how much they expand their balance sheet-pushing on a string.