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Department of "Huh?!": Federal Reserve Dissenters Edition II

FRED Graph  St Louis Fed 3

When Federal Reserve Bank of Philadelphia President Charles Plosser parrots his talking point about how inflation has increased since QE II was decided upon last fall…

Does he not know or not care that break-even expectations of ten-year inflation as revealed by the bond market have not risen? Does he not know or not care that the latest read on ten-year break-even inflation expectations was 2.18%/year? Does he not know or not care that nobody in the market expects any of the shortfall in the evolution of the price level relative to its pre-2008 trend is going to be made up?

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