Wednesday, February 20, 2008

The US has an inflation problem there anyone at the Fed paying attention?

With stock prices and credit market turmoil appearing to stabilize, at least momentarily, from Wall Street's volatile New Year's debut, anxious investors have found a new worry: inflation.

Crude oil futures settling above $100 a barrel for the first time Tuesday reminded consumers and businesses that they are paying more for many essential items.

Evidence has mounted that a U.S. recession is under way or in the wings. Typically, recessionary conditions prompt stable or lower prices. But commodities, from copper to soybeans, have been marching steadily higher this year, led by oil.