The Fed Cranks Up Its RhetoricBy
Federal Reserve rate-setters couldn't cut rates any more, so—in a divided vote—on Jan. 28 they cranked up their recession-fighting rhetoric instead. In ordinary times, the Fed's chief nemesis is inflation. But in a remarkable turn of events, the policymakers hinted that inflation is now actually too low. They said they see "some risk that inflation could persist for a time below rates that best foster economic growth and price stability in the longer term."
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