Just when you think the Federal Reserve and Bernanke and Company are playing by the rule book you discover what a foolish idea that is.

The Fed has been talking about how fighting inflation is so important. How they need to order a check on vigilance. Reality is that everyone on Wall Street has been seeing production costs and producer prices of every manufactured good and transportation issue increasing.

You can survey and check the opinion of the Main Street consumer in just about any region of the country and they’ll tell you they are getting squeezed by increased costs of everything from fuel to property taxes.

And doing a little further investigation and checking on price of imports into the U.S., we find they have gone up well over 15% in the past year. Upon further checking and investigation we find, for the most part, this overall inflation hasn’t completely hit consumers.

Not yet.

The world economy and China are increasingly dependent on oil. Competition for the basic underlying driver of inflation, oil fuel, is increasing and will not disappear.

So you would personally think that they would raise interest rates?

As long as interest rates stay as low inflation will continue to be a problem. Ben Bernanke needs to push rates higher to control the inflation we see today.