¨The oil price hike is not only generating chaos in countries due to food riots but has also created transport strikes in Europe. There are shortages and even one death, ¨ says Paola Pecora.

Come on, do you really believe the Fed is going to raise rates now, or in the near future with the economy teetering on the edge of a deep dark recession? Not a snowball’s chance in you know where! So, that leaves us with jawboning.

U.S. Federal Reserve Chairman Ben S. Bernanke came out in support of a stronger U.S. dollar today (Tuesday), indicating the Fed would remain on pause at its next meeting.

I don’t think the ECB is going to go forward with a rate cut in May, or anytime soon for that matter! Recall, that a couple of weeks ago, I pulled the May rate cut forecast because of this nagging inflation, and now it’s gone higher!

I’ve mentioned more than a few times here that unemployment is a lagging indicator. What that means is, that things get bad in the economy, and then the jobless figures start to rise, not the other way about.