SBE Council Economist on Latest Inflation Numbers and Fed Policy

Raymond J. Keating, chief economist for the Small Business & Entrepreneurship Council (SBE Council), offered the following statement in reaction to the CPI inflation numbers released this morning by the U.S. Bureau of Labor Statistics:

“CPI inflation running at 0.4% in February provides a worrisome reminder of the potential fallout of historically loose monetary policy that the Fed has been running for the past three and a half years.

“There are two consequences of loose monetary policy – the risk of higher inflation and the problem of price volatility. Threats continue to loom regarding the value of the dollar, energy prices, future interest rates, and the inflation-adjusted capital gains tax.

“Throw in risks on the fiscal side of the policy equation – such as unprecedented levels of government spending, and the threats and realities of increased tax and regulatory burdens – and entrepreneurs, investors and business managers continue to face too many questions for the good of the economy.”