Fed will tighten policy before inflation surges, Kohn says

03/25/2010 | Reuters · Bloomberg Businessweek

Federal Reserve Vice Chairman Donald Kohn said he expects that the central bank will increase interest rates before an inflationary surge develops. "I am confident the Federal Reserve can and will tighten policy well in advance of any threat to price stability, and successful execution of this exit will demonstrate that these emergency steps need not lead to higher inflation," Kohn said.

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