ObamaCare vs. YellenCare

The most recent Fed minutes came out and we were surprised to see the consternation amongst some Fed Members regarding the downward trend in medical costs. The concern was voiced in the context of a discussion on the decelerating overall price level. Some of the voting members were optimistic that wage growth momentum would be positive for inflationary pressures moving forward, but it should bother everyone that falling medical costs are a concern of those around the Fed meeting table. Correct me if I am wrong, but as I stated in our last post, the goals of monetary policy seem to have shifted towards the touchy-feely variety and as such it would seem that falling medical costs might benefit those that Chairman Yellen seems to be most worried about. Chalk this discussion up to one more example of: Be careful of what you wish for. If Central Bankers are becoming concerned, and thus forming policy decisions, based on naturally shifting price data (some go up some go down), it would seem only natural that they miss the forest for the trees. Particularly since history has proven that their forecast usually misses both the forest and the trees. Pay attention to the forest. Buy Stuff Sell Paper