Signs that consumer prices are rising even as the U.S. economyslows may delay additional moves by Federal Reserve Chairman Ben S.Bernanke to spur growth.
The Fed chairman, who is scheduled to speak at a Jackson Hole,Wyoming, conference on Aug. 26, used the annual gathering ofeconomists last year to hint at a second round of so-calledquantitative easing, in which the Fed purchased $600 billion ofTreasuries from November 2010 to June.
Investors, such as Barton Biggs, managing partner and co-founder of Traxis Partners LP, have called for the Fed to embark ona new round of asset purchases. Yesterday's announcement that theconsumer price index rose 0.5 percent from June, more than twicethe 0.2 percent median forecast of economists surveyed by BloombergNews, may embolden Fed policy makers who oppose further suchmeasures.
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