US inflation: Inflation: a new landscape

There have been times when a 4.3% rate of inflation in the US would have been welcome. The most recent was 1990, when the overnight interest rate was 7.3%. The overnight rate is now 4.25%, so the 4.3% consumer price inflation reported for November makes life tough for the Federal Reserve Board – and for investors. Back in August, it looked like a slowing US economy was pulling down inflation. The Consumer Price Index (CPI) was running at a 2% rate. By October it was 3.5%. The November 4.3%, w...