Is the Fed to Blame for Chinese Inflation?
Jun 16th, 2008 | By Contrarian Profits | Category: Featured, Financial NewsLast year, China was viewed as the driver behind rising commodities prices.
Now the blame for spiraling food and oil prices is increasingly being laid at the door of Fed Chairman Ben Bernanke for cutting the fed funds rate to 2% and unleashing yet another wave of inflationary surplus liquidity.
The fallout is now being seen as India, China, the Philippines and Indonesia hike their own interest rates to rein in rising prices.
Consumer prices jumped 7.7% last month, down from 8.5% in April, but inflation there remains top of the list of economic concerns.