Talk of inflation is dominating the news, and with good reason. In a recent column for Bloomberg, Bill Dudley, the former president of the Federal Reserve Bank of New York, warned of the danger of significant monetary inflation, something not seen in the United States for nearly 40 years.[1]
Many of the factors that have contributed to inflation in the past are present in the economy today. They include:
• Low interest rates[2]
• Prior to 2000, the Fed generally kept its key rate at or above 5%, but since the economic effect of 9/11, that rate has only been at 5% for a brief period, leading …
