Fed Officials Voice Doubt on Inflation as Tool to Boost Growth
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Two Federal Reserve policy makers voiced wariness about the idea of spurring growth by letting inflation accelerate as they reiterated support for the central bank’s unprecedented monetary easing.
Fed Governor Sarah Bloom Raskin said the central bank’s use of tools has been “completely appropriate” and that she would be “quite leery” of allowing higher inflation or price expectations in an attempt to lower real interest rates. St. Louis Fed President James Bullard said faster inflation won’t reduce the housing glut. He also said “monetary policy is ultra-loose right now, and appropriately so.”