JEC Chair Brady on the Inflation Outlook

From a statement by the Joint Economic Committee Chairman, October 9th, 2013:

I fear that the Federal Reserve through current policies of Quantitative Easing and maintaining extraordinary low interest rates may be providing the fuel for igniting high inflation.

And here is a shapshot of CPI inflation from today’s October release.

oct13infl1.jpg
Figure 1: Month-on-month annualized CPI inflation (blue) and chained CPI (red), calculated as log differences. NBER defined recession dates shaded gray. Source: BLS via FRED, and author’s calculations.And to show the lower frequency change, I also graph the annual inflation rate.

oct13infl2.jpg
Figure 2: Year-on-year CPI inflation (blue) and chained CPI (red), calculated as log differences. NBER defined recession dates shaded gray. Source: BLS via FRED, and author’s calculations.For alternative estimates (based on data applying up to September), see Monday’s post.

This piece is cross-posted from Econbrowser with permission.