Ben Bernanke today said that oil price increases are entirely due to increased demand by emerging markets ("according to the IEA", says Bernanke) (video). Unbelievable. Didn't the low U.S. dollar have anything to do with it?
Shocking, and quite appropriate for the title of this blog..
He also said the inflation in merging markets is "their problem". Please see our post today on Brazil's new interest rates hikes.
In addition, according to the Fed:
- Businesses are passing on surging costs to consumers.
- Hiring is modest.
- Wages are barely rising.
- Housing market is still struggling.
But while they told the Fed they're already passing on some of those costs to customers, homebuilders -- especially in the Cleveland and Atlanta districts -- are not, most likely due to the troubled housing market.