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The article discusses long-term expectations for inflation for the U.S. economy. The gap between yields on plain U.S. Treasury securities and inflation-adjusted ones does not suggest investors are expecting inflation to escalate sharply. This and other indicators reflect a degree of confidence among investors that the Federal Reserve will be able to contain inflation.

The article discusses skepticism about an ongoing bull market in stocks. Since March, 2009 the Dow Jones Industrial Average has risen 86% while the Standard & Poor's 500 index has gained almost 100%. However, some worry that rising oil prices, inflation, and cessation of stimulative efforts by the U.S. Federal Reserve could conspire to push stocks down.

The article reports that yields on 10-year U.S. Treasury bonds have risen to their highest levels since the spring of 2010, suggesting investors have become increasingly concerned about inflation. Short-term rates have remained stable, an indication that investors don't expect the U.S. Federal Reserve to take anti-inflationary measures.

The article discusses expectations for the U.S. economy in 2011. Although some including Jack Ablin of Harris Private Bank believe the biggest risk to the economy is too-rapid growth, a majority of economists and analysts foresee modest growth and low inflation for 2011. Three possible scenarios for weak, moderate, and strong economic growth are described.

The article reports that the U.S. Treasury Department sold inflation-protected bonds with negative yields for the first time ever. The development suggests a belief among investors that the Federal Reserve's efforts against deflation are succeeding, and that inflation could rise in the future. If inflation doesn't materialize, bond investors could find themselves paying the government to borrow their money.

The article discusses the bond market's equivocal views on prospects for deflation and inflation in the U.S. Treasury Inflation Protected Securities (TIPS) issued by the U.S. Treasury protect investors from inflation and have risen close to 10% during 2010. Conventional Treasury securities, which would perform much better amid deflation rather than inflation, have appreciated about 9%.

The article discusses the fondness of Van Hoisington, founder of Hoisington Investment Management, for U.S. Treasury bonds. For almost 20 years he has invested exclusively in such securities. Depending upon his outlook for inflation, Hoisington buys either short-term Treasury bonds or 30-year bonds. In 2010 he is buying the longer-dated bonds in the belief that inflation will fall and perhaps lapse into deflation.

The article discusses potential obstacles to an economic recovery in the U.S. Any spike in economic growth could impel oil prices higher. Fears of inflation might push interest rates up and further harm a battered housing market. Optimists hope that economic-stimulus measures can elicit demand without driving prices up.

The article reports on the warning issued by U.S. Federal Reserve's inflation hawks concerning the central bank's program to purchase hundreds of billions of dollars of U.S. Treasury bonds as inflation worries are again affecting the bond markets.

The article explores the impact of the interest rate increase of China on its currency and inflation as of October 20, 2010.

The article discusses inflation in the U.S. Although the U.S. Bureau of Labor Statistics is expected to report an increase in the consumer price index for November, 2009, the U.S. economy is not strong enough for vigorous inflation to take hold. Figures due from the Federal Reserve on capacity utilization for November will probably show use rates below levels some believe are necessary to keep prices from declining.

The article examines U.S. economic conditions. Retail trade statistics for October-November, 2009 indicate that consumption will continue to be steady or decline slightly as consumers remain reluctant to spend. This in turn is expected to keep the rate of inflation low. The implications of the December, 2009 consumer confidence index of the University of Michigan are considered.

The article discusses the U.S. Federal Reserve's balance sheet. Purchases of Treasury bonds, mortgage-backed securities and other instruments have caused assets held by the Fed to more than double, and increased the U.S. monetary base to almost $2 trillion. Subdued demand for loans and an unwillingness among banks to lend, though, have both kept inflation in check and impeded an economic recovery.

The article discusses the outlook for inflation in the U.S. Although figures from the U.S. Bureau of Labor Statistics are expected to show that inflation rose between September and October of 2009, several factors suggest its growth should be short-lived. Rather than pass price increases on to customers, businesses have been cutting costs and laying off workers. High unemployment in the U.S. also puts downward pressure on the inflation rate.

The article discusses inflation and the U.S. economy. Economist David Rosenberg notes that one measure of the nation's money supply has declined for several weeks in a row, while another gauge of liquidity maintained by the Federal Reserve Bank of St. Louis has fallen even further. These data suggest inflation poses little near-term threat to the U.S. economy.

The article discusses the U.S. Federal Reserve's holdings of mortgage-backed securities (MBS). Totaling some $740 billion, these MBS could potentially be used to combat inflation. By selling MBS the Fed would cause interest rates to rise, thus tamping down the housing market and by extension the U.S. economy.

The article discusses the impact of rent on the U.S. consumer price index (CPI). Rent and the homeowner's equivalent of same account for almost 40% of the CPI. Rents are apt to stay subdued as a result of high unemployment and falling demand as significant numbers of young people choose to remain living with their parents. Consequently, the CPI could remain under control as well.

The article discusses inflation in the U.S. During the week of June 14, 2009, figures for May consumer-price and producer-price indexes are expected to show declines from the year-ago period. Although the data show little sign of inflation, efforts by the Federal Reserve to pump money into the economy have Treasury-bond investors expecting a long-term inflation rate of 2.5%.

The article discusses the market for U.S. Treasury bonds. Rates on bonds have risen partly due to fears of inflation. Although the Federal Reserve has been buying bonds in an effort to keep rates down, those actions could provoke inflation that pushes rates even higher. At some point rising interest rates could have a negative impact on the economy.

The article discusses the impact on the U.S. trade deficit of the Federal Reserve's accommodative monetary policies. Anticipating inflation, investors could seek a hedge in commodities that the U.S. imports such as oil, thus pushing their prices up and exacerbating the deficit. However, inflationary fears can also result in a weaker dollar that makes U.S. exports more competitive and helps to shrink the deficit.

The article discusses economic factors that could have an impact on the earnings of H.J. Heinz Co. Weakness in the U.S. dollar and British pound against other currencies could exert downward pressure on profits. However, analyst Edward Aaron notes that any increase in inflation could help packaged-foods firms such as Heinz.

The article discusses the U.S. consumer-price index's (CPI's) "owners' equivalent rent (OER)." OER represents 24% of the CPI, and a major contributor to OER are rental costs, which are rising as foreclosed homeowners are forced into the rental market. OER can be expected to rise as a result, which could lead to a CPI that overstates the actual inflation rate.

The article discusses prospects for deflation in the global economy. Although Barclays Capital predicts both the U.S. and euro-zone will experience negative inflation for the year ended September, 2009, that largely reflects historically high food and energy prices reverting to more normal levels. Still, the long-term risk of deflation persists.

The article discusses the gap between actual and potential economic output in the U.S. A report to be issued in April, 2009 by the U.S. Federal Reserve could show U.S. industries to be operating at less than 70% of their capacity. Along with rising unemployment, such a production gap counteracts the inflationary tendencies of ramped-up government spending.

The article discusses the velocity of money in the U.S. Despite efforts by the Federal Reserve to pump liquidity into the financial system, during the final quarter of 2008 velocity fell to its lowest level since 1991, as cash accumulated in savings accounts and bank vaults. Economist Joseph LaVorgna notes that troubled assets on banks' balance sheets need to be addressed before velocity, and hence inflation, can pick up.

The article examines economic indicators on inflation released by the U.S. Bureau of Labor Statistics. The bureau's producer-price index for January, 2009 showed a surprisingly large increase. Economists state that the bureau does not seasonally adjust its price indexes for January, and predict low rates of inflation in 2009.

The article discusses inventory data in the U.S. Although inventories are expected to have fallen during November, 2008, the inventory-to-sales ratio for firms has risen to levels not seen since 2003, suggesting that inventories for many companies are still too high. An abundance of unsold goods could both keep inflation down and encourage firms to reduce payrolls.

The article discusses the outlook for commodities as investments. During times of inflation commodities often perform well, as do firms such as fertilizer maker Mosaic and seed manufacturer Monsanto. However, economic data evince little sign of inflation, suggesting subdued returns for commodities and related stocks.

The article discusses contradictory indicators for inflation in the U.S. The narrow spread between U.S. Treasury notes and inflation-protected securities suggests expectations for inflation are low. Conversely, the steep yield curve among Treasury notes of different maturities indicates high expectations.

The article notes reasons why the U.S. government's plan to spend $1 trillion to address an ongoing financial crisis may not be as inflationary as some expect. Commodity prices have weakened, as has the global economy. Credit markets remain constricted as many large firms seek to deleverage their balance sheets.

The article discusses inflation in the U.S. Inflation for producers likely exceeded that for consumers in July, 2008. History indicates that when the Producer Price Index reaches 7.1%, it remains high for several months. A more activist Federal Reserve Board, though, along with greatly diminished ability on the part of labor unions to win wage hikes, could produce different results.

The article discusses the consumer price index as calculated by the U.S. Bureau of Labor Statistics. A portion of the measure that attempts to account for homeowners' "imputed" rent may eventually have to be revised upward, thus hiking the inflation rate. On the other hand, factors such as a strengthening dollar and falling falling gas prices could exert downward pressure.

The article discusses ramifications of economic productivity. During reasonably prosperous times, increasing productivity can boost wages without provoking inflation. Amid a weak economy, though, rising productivity can exert downward pressure on wages. A report on U.S. productivity for the second quarter of 2008 is scheduled to be released by the Bureau of Labor Statistics on August 8.

The article discusses business prospects for Caterpillar Inc. Although the heavy-equipment manufacturer has enjoyed strong exports due to a weak U.S. dollar, as well as strong sales to firms in commodity sectors, it has also suffered from rising input prices. If commodity prices start to decline, so could Caterpillar's profits and share price.

The article discusses inflation in the U.S. Sharply higher oil prices have contributed to growth in the consumer price index. However, a flaccid job market has given employers power to restrain wage increases. That, coupled with the diminishing effect of high energy prices on economic activity, could be enough to keep inflation under control.

The article discusses challenges faced by the U.S. Federal Reserve. Rising oil prices suggest the Fed may once again focus its efforts on keeping inflation under control. However, Federal Reserve Vice Chairman Donald Kohn has indicated the Fed might let both inflation and unemployment rise some, rather than risk exacerbating one by treating the other.

The article discusses the role of the U.S. Federal Reserve in creating financial "bubbles." Some believe the failure of the Fed to sharply raise interest rates at opportune moments has helped create bubbles first in technology stocks, then in housing and commodities. Although rising commodity prices have provoked higher inflation, the Fed indicated on June 25, 2008 it was in no rush to raise rates.

The article discusses expectations for the May, 2008 consumer-price index to be released June 13, 2008 by the U.S. Bureau of Labor Statistics. Economists believe rising gas prices have caused the inflation rate to increase. However, it is thought that weak housing and jobs markets will prevent inflation from becoming too much of a problem.

The article discusses inflation in the U.S. Although food and energy prices have risen, home prices continue to decline. U.S. inflation data partially account for house prices by estimating what it would cost homeowners to rent the houses they live in. Figures indicate housing affordability has been increasing.

The article presents an evaluation of U.S. Federal Reserve Board monetary policy. Economic indicators suggesting that inflation could increase have led some investors in the federal-funds futures market to bet that the board will raise interest rates sometime in 2008. This is seen as unlikely. The core of current inflation is growth in foreign economies, something which is only slightly affected by the board's monetary policies.

The article reports that U.S. stock prices fell sharply in reaction to investors' anxieties about renewed inflation in the economy. The Dow Jones Industrial Average was down 1.5 percent, its largest one day drop since May 7, 2008. Inflation fears were generated by another record high for petroleum futures of $129 a barrel, and the Department of Labor's announcement of an 0.4 percent rise in its producer price index for April, 2008.

The article presents a forecast of the U.S. consumer-price index for April, 2008 to be announced by the Bureau of Labor Statistics on May 14. Investors fear that the rising prices of gasoline and food will cause the index to show a significant increase in inflation. Poor earnings reports from consumer product corporations such as Brunswick and Tyson Foods, however, show that companies are having difficulty passing on cost increases to consumers.

The article examines the continuing fall in the value of the American dollar. The currency's weakness in foreign exchange has been a boon to the profit statements of multinational corporations such as Caterpillar and McDonald's, whose foreign earnings swell when expressed in U.S. dollars. This benefit is temporary, as the dollar's weakness also creates inflation which damages the U.S. economy.

The article discusses the use by economists of a core inflation rate for the U.S. that excludes prices for food and energy. The exclusion is typically justified by price volatility, but as the authors observe, other items experience wide swings in price as well. A better measure of core inflation would adjust for all undue price movements, not just those in food and energy.

The article discusses signs of slowing retail sales in the U.S. For the month of January, 2008 the year-over-year sales increase was less than the rate of inflation. Economists expect sales for February to have grown by just 0.1%. Falling home prices are partly to blame, as a weak housing market inhibits homeowners' ability to obtain home equity loans to finance consumption.

The article reports that the yield on five-year Treasury Inflation Protected Securities (TIPS) issued by the U.S. government is negative. Investors' fears of inflation are partly accountable, but so is credit market volatility. In uncertain times investors' demand for safe securities such as TIPS increases, thus driving down the yield.

The article argues that the U.S. economy may avoid stagflation. Economist Robert Brusca notes that inflation has increased prior to every recession since 1961, but then retreated in the face of reduced economic activity. The stagflation of the 1970s was caused by the U.S. Federal Reserve's overeager monetary expansion, a mistake it seems anxious not to repeat.

The article discusses economic conditions in the U.S. prior to Federal Reserve Chairman Ben Bernanke's testimony before the U.S. House Financial Services Committee on February 27. Economic growth appears to be slowing, and expectations for inflation seem to be increasing. Interest rates on long-term, fixed-rate mortgages are also rising.

The article discusses the adverse implications for stock prices of rising inflation. During the 1970s stock prices fell as inflation surged, but recovered during the 1980s and 1990s as inflation moderated. A study by Ned Davis Research shows that years in which the consumer price index registers above-average increases presage weak performance by the Standard & Poor's 500 index.

The article discusses financial market results for June 15, 2011. The Dow Jones Industrial Average declined over 178 points, while the Standard & Poor's 500 index lost 22.45 points. Investors were said to be concerned about the potential impact on European banks of a default by Greece on its sovereign debt, as well as news of rising inflation in the U.S.