By Gary Gordon of etfexpert.comWith substantial resource slack likely to continue to dampen cost pressures and with longer-term inflation expectations stable, the Committee expects that inflation will remain subdued for some time.
-- Fed Chairman Ben Bernanke and voting members of the FOMC I understand the reasoning behind the Fed's decision to leave interest rates at 0%-0.25% for an "extended" period of time. They hope to stabilize real estate prices, foster the flow of credit as well as tame unemployment. (They've got a whole lot on their plate!) Still, is the FOMC turning a blind eye to the deterioration of the U.S. dollar. Are they unconcerned about foreign entities shying away from both the currency and U.S. government debt? How long will the Fed wait before it endeavors to preserve purchasing power, as opposed to allowing inflation to get ahead of the committee's projections? Just a few thoughts ... but I digress. In truth, I am more interested in the inflation-fighting ETFs. After all, the Fed has been battling deflation and downplaying inflation for so long, one wonders why these ETFs have shined so brilliantly in 2009. (They are They are the PowerShares Dollar Bearish ( UDN), the iShares TIPS Bond Fund ( TIPS), the Power Shares DB Total Commodities Index, the SPDR International Government Inflation Protected ( WIF), the SPDR Gold Trust ( GLD), the PowerShares DB Precious Metals ( DBP) and the PowerShares DB Base Metals ( DBB).)