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A look at the ripple effect of rising gas prices at pumps across the country.
Wages rose 0.4percentt before taking into account the effect of rising prices.
Now many fear it will have a worsening effect of rising prices & unemployment.
The effect of rising rates on some stocks, particularly financial services, has already been brutal.
Still, the effect of rising labor costs on consumer prices has been restrained, the Fed said.
Moreover, the economy and the markets are changing in ways that tend to dampen the effect of rising rates.
In addition, the commission said, when the board disclosed the shortfall, it overstated the effect of rising construction costs.
That may help to offset the effect of rising oil prices, which have reached almost record highs.
"It would be fatal to completely remove the disciplinary effect of rising interest rates," Mr. Weidmann said.
A stronger euro blunts the effect of rising prices for oil and other commodities, which are traditionally priced in dollars.
The biggest benefits are likely to come from the positive effect of rising carbon dioxide concentrations on plants, which rely on the gas for photosynthesis.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com