A Fed Reserve bank president gives a speech in Istanbul on the positive effects on unemployment increasing inflation would have as the Turkish government beats and gasses peaceful protesters.

Thousands of Turkish protesters poured onto the streets and reoccupied a central Istanbul park as the police withdrew after three days of clashes that sparked a massive anti-regime demonstration.
The police retreat from Gezi Park and nearby Taksim Square today came as supporters of the opposition Republican People’s Party marched on the square. After reoccupying the park, they danced and called for the resignation of Prime Minister Recep Tayyip Erdogan, who appealed for an end to protests while ordering an investigation into police use of pepper spray.

ISTANBUL—Turkey’s annual inflation jumped in January due to tax increases on tobacco products and rising food prices, the state statistics agency said Monday, despite the central bank’s desire to slow inflation to 5% this year.
But analysts say the central bank will tolerate some surprises and isn’t likely to take action unless forecasts change.
The consumer-price index rose 7.31% annually and 1.65% on a month-to-month basis in January, the statistics agency said. The pace accelerated from a 6.16% annual increase in December. The rise in CPI was above the 6.8% annual rate and a 1.15% monthly increase forecast by six economists surveyed by Dow Jones Newswires.