BigTrends

Today we'll hear from a few Fed governors who step on the soapbox.  One in particular, Jeff Lacker, is a noted inflation hawk who has been squawking lately about his concerns.  Surely there is some inflation out there, look around you...just go to the gas pump and you'll see it.  But if he and the other governors display some concern over rising inflation, is it just lip service, smackdown/talkdown prices or are they really going to threaten higher rates?  The yield curve is quite steep now and portrays a picture of very healthy growth, perhaps too healthy.  The Fed actions tend to lag so even if they did raise rates the effect would not be felt until early 2010.  Keep your ears to the ground and pay attention to what is being said and by whom, that's the best edge you have in this game.