You really do wonder what planet the people on Federal Reserve are on.
Food prices have now reached record levels and are still going up because of rising oil prices. Someone should tell the president of the New York Federal Reserve Bank, William Dudley.
Reuters reports that Dudley told an audience that rising food prices are not that big a problem in the greater scheme of things because some consumer goods are now cheaper.
"Today you can buy an iPad 2 that costs the same as an iPad 1 that is twice as powerful," he said referring to Apple latest toy on the market. "You have to look at the prices of all things."
As someone quipped, you can't eat an iPad.
Still, it means the Fed is not going to do anything about inflationary pressures created by food prices. Not when you can an iPad for cheap. If nothing else, it tells us that the people who shape economic policy in America are not living in the real world.
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