The Point of QE3 Could Be Higher Inflation

The Washington Post ran a piece that highlighted the concerns of Richard Fisher, the President of the Dallas Federal Reserve Bank, that the Federal Reserve Board's latest round of quantitative easing may lead to higher inflation. Fisher notes that financial markets indicate that investors are now anticipating higher rates of inflation than was the case before the Fed's latest move.

It would have been worth noting that this is arguably the intention of the policy. This certainly is the goal of...