Just as we can't eat iPods, we can't subsist on official reassurances that the Fed and inflation are both benign.
There is a great divergence between the conventional financial media and the public who goes to the supermarket: the financial media swallows whole the official artifice that inflation is near-zero while J.Q. Public sees his/her grocery costs, health insurance, etc. rising by leaps and bounds.
Many observers finger the Federal Reserve as the villain in the inflation story: it's all well and good to conjure up a few trillion dollars to pass out to your banker buddies, but there are always costs, recognized or not, to every action, and the Fed's credit creation and numerous quantitative easing operations have greatly expanded money supply.
All else being equal, a massive expansion of money typically causes inflation, as the flood of new money starts chasing goods and services that haven't expanded at the same high rate as money supply. ...