Wednesday, July 9, 2008

Federal Reserve president Lacker says inflation is unacceptably high

As reported by CNBC:
Recent inflation figures are "unacceptably high" and the Federal Reserve should focus on combating that rather than on stimulating the economy, Richmond Federal Reserve President Jeffrey Lacker said Tuesday.

The risks of a sharp economic slowdown have "diminished substantially," which enables the Fed to consider other challenges, such as rising prices, Lacker said. The central bank can help ease inflation by raising a benchmark short-term interest rate. ...

While the economy "is growing at only a tepid pace overall," Lacker said that economic data released in the last few months has "not yet shown the sharp, widespread reversals that define a recession."

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