By Peter D. Schiff Guest Columnist Last week the U.S. Federal Reserve moved one step closer to acknowledging reality. Unfortunately, it didn’t let that admission move it from a policy course firmly guided by fantasy - meaning the central bank opted to stand pat on interest rates, despite the clear escalation of inflationary pressures. In the policy statement that accompanied that decision last week, Fed Chairman Ben S. Bernanke and the other members of the interest-rate-setting Federal Open Market Committee (FOMC) took an important step in noting that inflationary concerns had taken hold in the country at large. But as it asserted that it expects inflation to moderate this year and next, the Fed gave no indication that these heightened expectations are gaining traction within the FOMC itself. As a result - with Richard Fisher, president of the Federal Reserve Bank of Dallas, ...