Independent voices from the TWT Communities
The Dow Jones industrial average surged 286 points Wednesday, its best day this year.
Last week, Dennis Lockhart, president of Atlanta's Federal Reserve Bank, declared the recent jump in consumer prices will not last. Saying the recent surge in inflation was primarily because of food and gasoline prices, he said that "this trajectory will not persist."
A top Federal Reserve official on Monday said the central bank should react if oil prices soar as high as $150 a barrel because prices that high could throw the economy back into recession.
"I think at the $120 range — it's a manageable level," Mr. Lockhart told the National Association of Business Economists.
Despite widespread worries that the Fed could stoke inflation by accommodating high oil prices, Mr. Lockhart said inflation is not a problem, especially because wage gains — the biggest cost for most businesses — remain anemic.