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1) Here’s a quote from Fed head Janet Yellen on at a meeting in Cleveland on July10 this year. (see www.federalreserve.gov then click news and events…Regarding inflation, as I mentioned earlier, the recent effects of lower prices for crude oil andfor imports on overall inflation are expected to wane during this year. Combined with furthertightening in labor and product markets, I expect inflation will move toward the FOMC’s 2percent objective over the next few years. Importantly, a number of different surveys indicatethat longer-term inflation expectations have remained stable even as recent readings oninflation have fallen. If inflation expectations had not remained stable, I would be moreconcerned because consumer and business expectations about inflation can become selffulfilling
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