4/1/2009

The Federal Reserve must be ready to raise interest rates to blunt a likely inflation spike as the U.S. economy returns to growth, even if unemployment is still increasing, said Charles Plosser, president of the Federal Reserve Bank of Philadelphia. Plosser is a known inflation hawk on the Fed's board. Because unemployment is a lagging indicator of what is going on in the economy, he said, the economy will turn around before joblessness falls.

Full Story:
Reuters

Related Summaries