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Published on Jan 10, 2011
Can Federal Reserve Chairman Ben Bernanke really keep inflation to 2% by "raising interest rates in 15 minutes" as he stated in Dec. 2010? No. Finished goods inflation is already as high as it was in 2007 when civilian unemployment was only 4.8% versus 9.4% today. But home prices are falling again. The Fed has to choose between commodity inflation or a re-crashed housing market and even higher unemployment. Which will he choose?