Donald Kohn, the Federal Reserve Vice Chairman gave a speech today (6/26/08) at the International Research Forum on Monetary Policy in Germany. In his speech he proposed the idea that fuel and food prices would soon be dropping. To this, Mr. Vice Chairman, we respectfully say: Bull. Or, perhaps, Bear, because that is what we are going to continue to see for quite a while. Here’s a quote: “In those countries where strong commodity demands are associated with rapid growth in aggregate demand that outstrips potential supply, actions to contain inflation by restraining aggregate demand would contribute to global price stability.” ...
Anytime
