Inflation has been dead so long that even a warning from Alan Greenspan inspires skepticism. "I don't think we're going to have an inflation problem," said economist Robert Brusca of FAO Economics following the Federal Reserve Chairman's words of concern accompanying a hike in short-term interest rates last week. "I think we have a Fed-credibility problem." Brusca is more worried about nascent signs of weakness, including eroding consumer confidence. A slowdown would quell inflationary pressures quickly, and one theory is that Greenspan's warning was part hype to justify jacking up rates so that he has room to cut them again if...
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