When NY Fed's Bill Dudley was pressed by a working-class audience about how he can view inflation as low when grocery prices keep rising, his response: "You can buy an iPad2 that costs the same as an iPad1, that’s twice as powerful." Grumbling ensued, as Dudley is stunned to learn that iPads are more popular at Fed offices than on the streets of Queens.
This is not going to end well. No one at the Fed has a clue. They are isolated in a wealth bubble. They don't understand how people live. An Egyptian or Tunisian style melt-down looks more and more likely.