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The Fed's got it right. Data going back to 1962 shows the 10-year Treasury yield is far more...
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Monday, August 20, 2012, 3:11 PM ETThe Fed's got it right. Data going back to 1962 shows the 10-year Treasury yield is far more correlated with core CPI than it is with the headline rate, notes Matt Busigin. Since 1986, the Treasury/core rate correlation is even higher, getting pretty close to 1. The data also gives truth to the argument that energy and food price shocks (which affect the headline) are deflationary.
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Are you saying that price increases in energy and food are a leading indicator to deflation or what?