- Significant risk of headline inflation rising on a sustained basis even as core remains tame
- Would not pull plug on QE2 today but should be considered meeting by meeting
- Unfair to blame Fed for rise in commodities prices
- No reason Bernanke should not do press conferences
Meanwhile, back in the market, prices are chipping away at 1.3680 offers. Offers are scattered up to 1.3700 while stops are seen around 1.3685.
