Russell Investment’s new quarterly survey of investment managers reports a fair degree of confidence in the performance outlook for the global economy and capital markets next year.
Daily Archives: December 15, 2010
INFLATION STAYS TAME IN NOVEMBER
Today’s update on consumer prices for November provides no cover for analysts expecting higher inflation to burst out any day now. Consumer inflation rose a mere 0.1% last month on a seasonally adjusted basis, the Labor Department reports. That’s down from 0.2% in October. Core inflation—price changes less the volatile food and energy sectors—is also quiescent, inching higher last month by only 0.1%. If there’s an imminent threat of inflation trouble, it’s not obvious in today’s CPI report.
WHAT’S THE DEAL WITH HIGHER RATES?
The Federal Reserve is forging ahead with its quantitative easing strategy for monetary policy. Although there’s a sea of critics who think the central bank should rethink QE2, there was no mention of the debate in yesterday’s FOMC statement, which explained: “To promote a stronger pace of economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate, the Committee decided today to continue expanding its holdings of securities as announced in November.”