The disconnect between the U.S. central bank and the general economy was put on center stage today as Federal Reserve Chairman Janet Yellen referred to a question on rising price inflation for food and energy at the June 18 FOMC meeting as 'just noise', and stated that it not being seen at all by the central bank's chart models.
I think it's important to remember that, broadly speaking, inflation is evolving in line with the committee's expectations.
The committee has expected a gradual return in inflation toward its 2 percent objective. And I think the recent evidence we have seen, abstracting from the noise, suggests that we are moving back gradually over time toward our 2 percent objective and I see things roughly in line with where we expected inflation to be. - Zerohedge
Unfortunately for the American people, what the Federal Reserve observes on their charts is far from reality in the actual marketplace. According to the leading statistician on economic indicators John Williams, the true rate of Consumer Price Inflation (CPI) for the first quarter is just under 6%, and in store to store surveys, food prices have grown to as high as 67% for staples such as coffee and bacon since the beginning of the year.
The Fed is no longer a benchmark for determining accuracy in the economy or monetary system, and their reliance upon manipulated government, or in-house models, is meant to protect their own failed polices more than it is to provide guidance for the American public. And while the Fed continues to tout a low inflation environment from their offices in New York City, consumers continue to bleed from rising costs in all the basics such as food, fuel, healthcare and education.