Fisher: Fed Should Increase Rates If Inflation Accelerates

Bloomberg.com: News

May 29 (Bloomberg) -- Federal Reserve Bank of Dallas
President Richard Fisher said he expects the central bank would
raise the benchmark U.S. interest rate should the public begin
to expect greater gains in consumer prices.

``If inflationary developments and, more important,
inflation expectations continue to worsen, I would expect a
change of course in monetary policy to occur sooner rather than
later, even in the face of an anemic'' economy, Fisher said
yesterday in a speech in San Francisco.

Until the Treasury and the Fed pursue a legitimate effort to support the dollar inflation will increase. the longer they wait the worse it will get.