U.S. Fed presidents see danger of inflation falling too low

04/18/2013 | Bloomberg

Further signs of disagreement in the U.S. Federal Reserve emerged, with three presidents of regional banks expressing concern that more stimulus may be needed if inflation edges much below the 2% target rate. "The Fed is missing its dual mandate on both sides -- unemployment is too high, and inflation is too low. This simply makes it more likely the Fed will stick with the program for a while, and talk of scaling back [bond buying] this summer is diminishing, partly because of the inflation data," said Josh Feinman, New York-based global chief economist for DB Advisors.

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