'U.S. inflation rises by most since March,' flashed the headlines across the newswire last Thursday. Turns out, consumer prices in America are rising at an annual rate of 3.6 percent - sharply higher than the Federal Reserve's 'target rate.' Hold on a minute. Didn't the Fed say last week that it will keep short-term interest rates near zero until at least mid-2013? How can they keep interest rates low and fight rising inflation?
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