Just a little note. If inflation is indeed to start translating into wage and price pressures then the economy will have to quit shedding jobs, something it isn't in any hurry to do. It's hard to ask for higher wages when you're out of work, and it's hard to increase prices for the things you are trying to sell when your customers are out of work.

The underlying and probably rather malignent weakness of the U.S. economy will continue to undermine the value of the dollar and keep imports expensive no matter what the Fed does, they are in a position of having to swim upstream here.