Fed’s Bullard
The slow rise in prices is keeping Fed policy makers cautious as they mull when, and by how much, to reduce their monthly asset purchases. St. Louis Fed President James Bullard, a supporter of the record stimulus, has said the low levels of inflation should mean any reduction in bond buying is more modest.
“A small taper might recognize labor-market improvement while still providing the committee the opportunity to carefully monitor inflation during the first half of 2014,” Bullard, a voter on policy this year, said last week in St. Louis. “Should inflation not return toward target, the committee could pause tapering at subsequent meetings.”
After their September meeting, Fed policy makers said in a statement that inflation persistently below its 2 percent objective could pose risks to economic performance.
The CPI is the broadest of three price gauges from the Labor Department because it includes goods and services. About 60 percent of the index covers prices consumers pay for services from medical visits to airline fares, movie tickets and rents.
Wholesale prices fell 0.1 percent in November, the third straight drop, according to Labor Department data released last week. November import prices declined 0.6 percent for a second month, the data showed on Dec. 12.
Article Appeared @http://www.bloomberg.com/news/2013-12-17/consumer-prices-in-u-s-unchanged-in-november-on-cheaper-energy.html