The Inflation that Concerns the Fed Does Not First Affect Food and Energy Prices

In an article on the Fed's decision to buy more bonds and to extend its commitment to a low interest rate policy, the Washington Post told readers:

"Fed officials have been sympathetic to concerns about inflation, which would first affect middle-class purchases of necessities such as food and gas."

Actually, inflation in food and gas prices are of the least concern to the Fed because they are largely out of its control. The price of food and gas are determined in international markets. When t...