Fed Taking Hard Line As Inflation Rears Its Ugly Head

Summary

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With Clorox Co. and FedEx Corp. announcing big price increases, business executives wringing their hands about sharply higher costs and Federal Reserve officials openly discussing their pricing concerns, inflation suddenly seems to be public enemy No. 1.

But it's probably worth taking a breath or two before declaring the economy to be in big trouble. For starters, the Fed is dealing with inflation by continuing to raise interest rates. Plus, history shows that price surges after natural disasters like Hurricane Katrina rarely stay for long.

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Fed Taking Hard Line As Inflation Rears Its Ugly Head

Of course, such a sanguine outlook might be hard to comprehend, given the current ev...

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