Fed's rate cut spurs fear of inflation

03/19/2008 | Washington Post, The

The Federal Reserve's interest rate cut has heightened fears of inflation. If the Fed miscalculates and pumps too much cash into the system, demand could rise and drive up prices, many economists say. But the rate cut also helps big exporters such as Caterpillar Inc. by keeping the dollar low and making U.S. products more attractive to foreign buyers.

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