Mar 25, 2011

Jeremy Siegel signals concern about Fed-caused price inflation

These inflation numbers are a bit troublesome. Oil continues to be strong, and it was strong even before we had the Mid East situation. Food, as we know, the biggest rise in 25 years on the Consumer Price Index, they can not ignore this forever and that's why my feeling is, you know Trichet has already said with the ECB, 'Maybe we'll raise in April,' that's certainly too soon for the Fed but I think by autumn, Bernanke's got to put out some words that he is thinking and looking at exiting from this enormously accomodative policy they've been following.

~Jeremy Siegel, professor of finance, Wharton School of Business, Bloomberg News interview, March 24, 2011

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