Despite the chaos on Wall Street, the Fed yesterday left its benchmark interest rate on hold at 2%.

Martin Hutchinson says the Fed has finally starting doing its job: putting price stability over Wall Street’s demands. Real interest rates are negative. This is feeding inflation. It also means Treasury bond yields - also currently below the rate of inflation - are too low and should begin to rise again.

Martin says investors can profit from this situation with the Rydex Juno Inverse Government Long Bond Strategy (MUTF:RYJUX).

Whip Inflation Now…Where Can We Get Help on Inflation?…The Patient Died Anyway…Inflation in Asia and Europe…There Are No Good Solutions

The US inflation rate rose by 0.6% in May — the highest monthly increase since last November.

The core inflation rate, however, which excludes volatile food and energy prices, only rose 0.2%, easing fears that rising commodity prices would feed into more widespread inflation

But can the government’s inflation data be trusted? John Brown in The Daily Reckoning doesn’t think so…

These investments of foreign capital, so valued and hoped for by the economy, are generating problems for Colombia since they affect the type of change required to impact the competitiveness of the Colombian economy.

The inflationary reality that we as consumers have been living for months may finally be starting to dawn on the U.S. Federal Reserve.