Inflation Fears for 2005?

The CBS MarketWatch Alert at 2:15pm today was: "Fed fretful over inflation at Dec. 14 meeting." To quote TAP (name of this blog if you have already forgotten) from the day before yesterday in my 2005 financial prediction: "...slightly worried about inflation concerns in middle to 3rd Q of 2005." Believe me I had no inside information just my sense of what is really happening contrary to many negative reports especially prior to the November election. I still would not place any bets on my number prognostications.

Here is the Alert: WASHINGTON (CBS.MW) -- The Federal Open Market Committee was roughly divided into two camps on the outlook for inflation at their closed-door meeting on Dec. 14, according a summary of the meeting released Tuesday. A number of FOMC members were worried that the weaker dollar, higher energy prices and a slowdown in productivity growth may lead to higher prices. But others on the FOMC argued that wages remained under control and that the risk to prices from a weak dollar might be overstated. This is the first time the FOMC has released the minutes from its meetings after a three-week lag. In general, FOMC members were upbeat about the economy, saying that the expansion was "firmly established" and "resilient."