Fed Is Ignoring Signs of Inflation

Inflation is soaring, and the Federal Reserve is looking away.

It has printed trillions of dollars to save big banks from their financial crisis debauchery and to keep interest rates low to spur economic recovery, but those have not improved the lot of ordinary Americans.

Here are five things you should know:

1. Inflation Is Heating Up

The Fed target is 2 percent inflation, but since March the pace has quickened. In May, the Consumer Price Index, the data the government uses to adjust Social Security and other benefits, increased at an eye-popping 4.3 percent annual rate.

Troubles in Iraq are pushing up gas prices, and growth in China is creating huge demand for grain on global markets, increasing meat, dairy and other grocery prices.

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