Oil costs combined with raising interest rates will be a devestating blow to growth.
Time for Greenspan to GO.
Higher interest rates are strengthening the dollar. A stronger dollar will lower the price of imported oil and other commodities.
You're exactly right. They need to factor OUT energy costs when computing inflation, and factor it IN when trying to predict economic strength.
Oh, no. They are quite mendacious.
Inflation has been roaring along at 5-6% for the last several years, and the oil spike should kick it up to about 10%. You won't hear a word about it from these guys, who refuse to measure anything that actualy goes up on the off chance you might change your spending habits.
While they may well be "idiots" there is nothing in your post indicating that they are merely that they do understand what inflation is and that a rise in oil prices cannot, by itself, cause it.
However, what I want to know is why a mealy-mouthed report like this cause the market to turn around today and go positive?