Why is the Fed is worried about inflation?

Also: How come profits for oil refiners are falling?

Why is the Fed worried about inflation when typically it is caused by too few goods being chased by too many dollars. Isn’t the problem now is that inflation is tied to the rise in energy costs


And, yes, higher energy costs are a big cause for concern. As you correctly describe it, the problem is that are too few barrels of oil for all the consumers who need it (or want it now to hedge against future price increases) and are willing to pay whatever the last barrel sold for. That’s helped push the so-called “core” inflation rate (which leaves out food and energy) above two percent a year