Yellen's Denials About Inflation Will Curb Fed's Independence
NEW YORK ( TheStreet) -- Testifying before the Senate Banking Committee this week, Federal Reserve Chairwoman Janet Yellen cherry-picked data on inflation by noting prices are up less than the Fed's target of 2%.
The Labor Department's consumer price index has accelerated since March and was up 4.2% in May.
On Tuesday, it will release June data, and although the numbers may not be quite so high, they likely will show inflation continued above 3%. Once inflation gets out of control, history has shown it is difficult to contain without a steep and painful recession.
Congress recognizes these dangers, and Yellen's cognitive dissonance will add new life to legislative proposals to rein in the Fed's independence.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV