The FED may be a little reticent on lowering rates now:

< a href='http://us.rd.yahoo.com/finance/news/topnews;_ylt=AoZ1blFSESNtp63V6Ija0iK7YWsA/*http://biz.yahoo.com/ap/080116/economy.html'>Inflation Rate is Worst in 17 Years- AP

“Higher costs for energy and food last year pushed inflation up by the largest amount in 17 years, even though prices generally remained tame outside of those two areas. Meanwhile, industrial output was flat in December, more evidence of a significant slowdown in the economy.”

The FED can pretend core inflation is all the matters, but that doesn’t mean the dollar won’t become worthless, or that it’s not their job to protect it.

Makes me wonder if once they realize we’re in a recession, unemployment above 5%, the dollar at it’s weakest in decades, and inflation the highest in decades, if the FED might actually do what’s right and raise rates…