The Fed has no idea what’s happening with inflation

Fed officials didn’t forecast low inflation and when Chicago Fed President Charles Evans said disinflation has been “puzzling” he wasn’t alone.

In October, CPI fell to just +1.0% y/y, the lowest since 2009. It ticked up to 1.2% the following month and is expected at 1.5% for the December data at the bottom of the hour. If anything can completely derail Fed expectations in 2014, it’s falling prices.

( Source : www.forexlive.com )