The Clinton Herald, Clinton, Iowa

Opinion

February 15, 2014

Employment numbers will rebound, at some point

A little mental trick I have used to get through long winters is to proclaim March 1 as the beginning of spring.

Officially, spring begins later, I know, but it is the perception that winter is over and spring approaches. The days do not move faster, but a little psychological trick helps me get through the final weeks of winter.

Inflation is a common topic. The huge expansion of the Fed’s balance sheet feeds fears of a surge in inflation. There are two generally used measures of inflation: the consumer price index (CPI) or the Fed’s preferred metric, the core personal consumption expenditures index deflator (PCE). For the fourth quarter, the PCE was just above the post-recession low at 1.1 percent while core CPI came in at 1.7 percent. These two metrics of core inflation generally exhibit a high degree of correlation while their growth rates do not necessarily match.

This gap is largely due to different weighting factors used for the underlying components of each measure. Shelter/furnishings/household supplies make up 46 percent of core CPI versus 24 percent for core PCE. Nine percent of core CPI consists of medical care vs. 24 percent of core PCE and transportation is 15 percent of core CPI and 7 percent of core PCE. A substantial increase in rents would have a more pronounced impact on core CPI than core PCE while the reverse would hold true for an increase in medical care. Other categories have smaller differences between the two metrics, but you get the point.

The Fed’s inflation target is 2.0 – 2.5 percent before they would consider raising short-term interest rates. It had previously announced this target as part of two measures that would cause a rise in rates in order for it to fulfill its dual mandate of price stability and full employment. The other measure is unemployment.

Text Only
Opinion
  • Holly Youngquist Friends of the Library book sale is underway

    Friends of the Library Book Sale is open now. The sale is open to all until 8 p.m. today and on Friday, Aug. 1, from 9 a.m. to 8 p.m. Finally, Saturday, Aug. 2, is box day. From 9 a.m. to  3 p.m., books will sell at $3 per box.

    July 31, 2014 1 Photo

  • LETTER TO THE EDITOR: Cremation service helped pet owner in her time of need

    I wanted to share some positive news about a business located in Clinton that I’m guessing most residents aren’t aware even exists. It’s Northridge Pet Cremation on Main Avenue and for me they were recently a godsend.

    July 31, 2014

  • LETTER TO THE EDITOR: A Cappella choir concert was a success

    The CHS A Cappella reunion was great. It was real great to hear so many good voices of so many former choir members.

    July 31, 2014

  • LETTER TO THE EDITOR: Time to boost social security

    It's time for Congress to act so that Social Security benefits can finally start to keep pace with the cost of living.

    July 31, 2014

  • Dangerous Darkies Logo.png Redskins not the only nickname to cause a stir

    Daniel Snyder has come under fire for refusing to change the mascot of his NFL team, the Washington Redskins. The Redskins, however, are far from being the only controversial mascot in sports history.  Here is a sampling of athletic teams from all areas of the sports world that were outside the norm.

    July 29, 2014 3 Photos

  • Off and on the record Let us now praise anonymous sources.The new White House press secretary got into a familiar old spat with the White House press corps the other day over the use of anonymous sources.Josh Earnest — has there ever been a more perfectly named White Hous

    July 25, 2014

  • Be more informed

    Blame the city.That is a favorite pastime of many, including me at times. Driving over that pesky pothole or paying that annual property tax bill can lead to some choice words referencing the city. Nobody takes the brunt of being the scapegoat more t

    July 25, 2014

  • CCC thanks community, collaborators for successful movie night Clinton Community College would like to thank those who participated in the free outdoor movie showing of “Captain America – Winter Soldier” on the evening of Friday, July 18.We are grateful to have such wonderful community collaborators in the Erick

    July 25, 2014

  • Lindley, Tom.jpg Better police needed for college teams enticed to cheat

    The NCAA once cracked down on colleges that went too far luring top prospects, then it targeted teams that lathered players with special treatment. That was until the NCAA's get-tough approach backfired, rendering it ineffective and creating an opportunity for those who want to play dirty.

    July 24, 2014 1 Photo

  • Lindley, Tom.jpg Expectations too high for a rehabbing Woods

    Tiger Woods finished near bottom last weekend at Royal Liverpool, drawing out his drought of major tournament wins. Despite the disappointing showing, Woods' return to form remains a matter of when, not if.

    July 22, 2014 1 Photo

Poll

With the Clinton County Justice Coordinating Commission and the Clinton County Board of Supervisors discussing proposals to construct a new jail, do you think the time has come for Clinton County to construct such a facility?

Yes
No
     View Results
Facebook