Federal Doves

Bernanke and the Gentleman from Massachusetts spar on inflation. Frank is concerned over the Fed Chairman's concerns about inflation. Why isn't growth doesn't count for more.

However, I am left wondering why the FED has been so dovish on inflation. This year once again inflation is expected to come in above the Fed's unofficial target of 2%. IN my humble view the new flat yield curve is a sign that no matter what happens in the short-term investors are becoming ever more confident that over the long haul inflation will be tame.

This is a good thing and should be supported by an ever hawkish stance against raising prices.