The Federal Reserve wraps up its two day policy meeting today. It’s expected to announce whether it will pump more stimulus money into the U.S. economy. That would be a third round of so-called quantitative easing.
Meanwhile, we just got inflation numbers for August. Wholesale prices increased 1.7 percent last month — the biggest jump in three years.
Diane Swonk, chief economist with Mesirow financial in Chicago, says that the jump is significant because a big part of it stems from rising energy prices, with a portion also attributed to rising food prices associated with the drought.
“This is less of an inflation problem,” she says, “because it’s not being pushed onto final consumer goods prices. But it is hurting those families that are having to fill up their car and put food on their tables.”
It’s more of a demand problem than an inflation problem, she adds.
Marketplace is on a mission.
We believe Main Street matters as much as Wall Street, economic news is made relevant and real through human stories, and a touch of humor helps enliven topics you might typically find…well, dull.
Through the signature style that only Marketplace can deliver, we’re on a mission to raise the economic intelligence of the country—but we don’t do it alone. We count on listeners and readers like you to keep this public service free and accessible to all. Will you become a partner in our mission today?