St. Louis Fed President Says Commodity Spurt-Up Not Inflationary

From Marketwatch:

WASHINGTON (MarketWatch) -- The recent run-up in gold and oil prices is not inflationary, said James Bullard, the president of St. Louis Federal Reserve Bank of St. Louis, in a CNBC television interview Wednesday. Bullard said the Fed generally would not like to start tightening monetary policy until the unemployment rate starts down....

To the extent to which Bullard's opinion reflects the Fed Board of Governors', the low-rate party ain't over yet. Interestingly, Bullard hints that there's a commodity bubble; ironically, it means that the Fed may be inclined to keep fueling the run-up - and will do so as long that the BoG is convinced that the run-up is irrational.