"Everybody calls prices going up 'inflation,' but a lot of the prices going up are not inflation but are supply and demand signals," said Martin Murenbeeld, chief economist at Dundee Wealth Management Ltd. "The U.S. Federal Reserve Board has essentially zero control over food and energy prices," he said. "They can just jawbone and hope food and energy doesn't work itself through the labour force wage structure."
Stay Long the Commodity Inflation Trade [View article]
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"Everybody calls prices going up 'inflation,' but a lot of the prices going up are not inflation but are supply and demand signals," said Martin Murenbeeld, chief economist at Dundee Wealth Management Ltd. "The U.S. Federal Reserve Board has essentially zero control over food and energy prices," he said. "They can just jawbone and hope food and energy doesn't work itself through the labour force wage structure."