When the day comes for the Federal Reserve to remove from its balance sheet troubled assets purchased from banks during the credit-market meltdown, it will face some tricky and unpleasant options, David Howden writes in this blog post. The central bank has several options, but they differ largely in how much inflation they would introduce and when they would be felt. "Until the Fed finally decides to unwind its subprime balance-sheet positions, entrepreneurs will have to function in an era of uncertainty as to what price inflation lies ahead," Howden writes.

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