Fed should focus on inflation, not jobs

Fed chairman Ben Bernanke has said he's 100% certain that he will know when the Fed needs to raise rates to fight inflation.

Interest rates are driven by market forces, not Fed policy. Many investors will learn this lesson at at great expense to their portfolios.

Current Fed chairman Ben Bernanke has said he's 100% certain that he will know when the Fed needs to raise rates to fight inflation. And the Fed most certainly has run all kinds of scenarios for when and how to react to a changing economy, which is fine if the economy follows a textbook recovery. But what if other factors outside the Fed's control conspire to jack prices up even faster? Take oil prices, which soared recently as unrest set in across the Middle East. I'm betting Muammar Qaddafi wasn't on Bernanke's mind a few months ago. And neither was Japan.

Source: finance.fortune.cnn.com