Although some think it's too soon to worry about high inflation, there are risks for that to happen in the medium term. Besides the obvious risks, a new bubble might be brewing in asset prices as investors search for higher returns, and the gap between actual output and potential output might be...

President's message.

Commodities of all sorts have risen in price over the past few years. Some say that the prices reflect a bubble, driven by low interest rates and excessive speculation. Others say the price gains can be fully explained by supply and demand.

Despite pockets of strength, the U.S. economy continues to struggle to build consistent momentum. Real GDP growth rebounded in the first quarter of 2013 after ending 2012 on a relatively weak note.

In his column, St. Louis Fed President Jim Bullard downplays systemic risk to the financial system, given that failures of financial institutions would no longer be a surprise. (By now, the possibility of any failure is already being priced into the market.) As the shakeout of the industry...