In the world occupied by Ben Bernanke, things in the economy are moving along nicely. The economy is now “on firmer footing,” he told Congress yesterday.
The job market is “improving,” the Fed Chairman also noted. An improvement that still features an unemployment rate of almost 9 percent, where a hefty percentage the new jobs being created are temporary or part-time, and where new full-time positions generally pay less with fewer benefits than similar jobs past.
But jobs worry there? Not in Bernanke world?
Inflation has been noticed by Ben and his fellow Beltway economists. Clever chaps. But its only food that rose a humongous 3.9 percent at the wholesale level in a single month in February, and energy that was up a whopping 3.3 percent that month. No worry there. Probably temporary. Minor distractions in any case compared to the core rate that Ben focuses on which excludes such trivialities — though in Main Street world even if food and energy didn’t rise at all in coming months, these costs would still be up 3.9 and 3.3 percent respectively for the year.
But what’s to worry about that?
And as for that core rate that Ben and the boys at the Fed like to focus on— have you noticed increases in your monthly health insurance premiums along with increased co-pays and reductions in what’s covered? Ben hasn’t. Have you noticed airline price increases due to higher fuel costs? Ben hasn’t. Have you heard that chips that are the basis of so many electronic products whose own prices going down over the months have helped moderate Ben’s own inflation gauge, noticed these chip prices are about to soar because most come from Japan? Ben hasn’t.
A core inflation worry here? Not in Bernanke world.
Consumer spending is picking up. That makes Ben more optimistic. But how could it not be going up if people are spending so much more on gasoline and food? And health care? And airline tickets. And everything delivered in trucks that are running on more expensive gasoline?
Where’s the worry? There’s not much of it on view in Bernanke world. But he is “monitoring things here closely.”
In the ever growing realm of public officials that no one believes and/or takes seriously any longer, the Fed and its chairman have moved to the front ranks. Hopelessly ineffectual officials conspiring to make us feel better about lives they can’t really improve.
Still, let’s be fair. They do provide a modicum of comedy relief.
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