Regarding Robert J. Samuelson’s Feb. 19 op-ed, “Today, inflation. Tomorrow, crisis?”:
Moreover, the Federal Reserve uses the core personal consumer expenditure (PCE) price deflator to measure trends in inflation for conducting monetary policy. The core PCE price deflator typically is very close to the core CPI. It, too, has not exceeded a 1.5 percent annual rate for many months. (The January number is not out yet.) As a result, Mr. Samuelson was premature in fearing that the Fed will raise the federal funds rate faster than announced previously.
Lawrence "Larry" Schwartz, Fairfax
The writer was an economist at the
Treasury and Commerce departments.