Fed Chairman Ben Bernanke's attempts to stimulate the economy through monetary policy may be failing, as the latest producer price index (PPI) presented a deflationary scenario. PPI has now fallen for a third consecutive month, the Bureau of Labor Statistics announced on Tuesday, indicating deflationary pressures have built up in the economy. On Wednesday, the BLS is set to release the consumer price index (CPI), which fell 0.3% in November and is expected to come in flat for December.
Fed Chairman Ben Bernanke's attempts to stimulate the economy through monetary policy may be failing, as the latest producer price index (PPI) presented a deflationary scenario. PPI has now fallen for a third consecutive month, the Bureau of Labor Statistics announced on Tuesday, indicating deflationary pressures have built up in the economy. On Wednesday, the BLS is set to release the consumer price index (CPI), which fell 0.3% in November and is expected to come in flat for December.
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