[tylerhou]

Your salary is measured in dollars, but inflation affects your salary as well. When companies charge more for products, where do you think (some of) that extra money goes?

The rest of your comment has some interesting hypotheses (Cantillon effect, inflation encouraging bad investment) but in practice, you have to make measurements to see whether those effects actually happen. I haven't seen any empirical evidence for the Cantillon effect, and empirically we have evidence that a small amount of inflation does not decrease output (and can increase output in some cases).

http://www.sciencedirect.com/science/article/pii/0304-3932(9...

> It's no big deal for those involved in fed policy making as they are usually the first to see it coming

Even if this is true, the amount of money owned by the people controlling the Fed is miniscule.