Read the Bills Act Coalition

Tuesday, November 17, 2009

The Fed Recieves some Good News - Producer Prices in U.S. Increase Less Than Forecast

...holding off inflation.  From Bloomberg:

Wholesale prices in the U.S. increased in October for just the second time in the past four months, indicating inflation will not be a concern for the Federal Reserve....The 0.3 percent increase in prices paid to factories, farmers and other producers was smaller than forecast and followed a 0.6 percent drop in September, according to Labor Department data released today in Washington. Excluding food and fuel, so-called core prices unexpectedly dropped 0.6 percent, capping the smallest 12-month gain in five years. ...Excess capacity near June’s record low of 68.3 percent will probably prevent suppliers from passing on the recent rebound in commodity costs for months to come. The report underpins Fed expectations, reiterated yesterday by Chairman Ben S. Bernanke, that inflation will be “subdued,” allowing policy makers to keep interest rates low for an “extended period.”


Read Here: http://www.bloomberg.com/apps/news?pid=20601087&sid=a_DFcB_WJQEM&pos=2

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