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When there is an absence of economic data, it is impressive if nothing else, how much attention is paid to speeches given by Federal Reserve officials. Once of the most important jobs of the Fed is to control inflation. Everyone on Wall Street knows this. Yet, when St Louis Fed President William Poole comes out Friday and says that “if we get an upside surprise on [gross domestic product] growth, then monetary policy may have to be tightened somewhat,” the market is upset. Dallas Fed President Richard Fischer warned, “I wouldn’t rule out further increases in the federal funds rate if inflationary winds gain the upper hand.”

So basically, the Fed is making it clear to the market that they are not afraid to do their job, which is very important and good for long-term rates, like mortgages. Friday brought one more warning to the ugly inflation monster from Cleveland Fed President Sandra Pianalto. She cautioned, “I am not yet convinced that the inflation trend is shifting down,” adding, “some additional policy firming may be needed.”

Sounds like Fed Chairman Ben Bernanke got his point across to the team of Fed officials. It is true that the Fed has become more optimistic that inflationary pressures will wane this year, but they are ready to pounce if the price pressure starts to climb. If you have a minute, check out Fed Chief Bernanke’s speech on the distribution of economic well being this week.

In the end, we want a Fed that is tough on inflation and one that is very transparent about its mission. Sometimes the market needs a little reminder of why the fight against inflation is so important to all of us. Nice job Chairman Bernanke. Keep up the good work.