Abe's Worst Nightmare: Household Spending Collapses As Inflation Spikes

http://www.zerohedge.com/news/2014-06-26/abes-worst-nightmare-household-spending-collapses-inflation-spikes

FOMC press release

In the November 4, 2009 Federal Open Market Committee (FOMC) press release:

http://www.federalreserve.gov/newsevents/press/monetary/20091104a.htm

The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period.

Furthermore,

Household spending appears to be expanding but remains constrained by ongoing job losses, sluggish income growth, lower housing wealth, and tight credit.

My take: great, as the average worker is losing their job--or has their salary cut, and their home value is further eroding, and they can't get a loan, they're managing to spend more money.

Anything wrong with that picture?