Bloomberg reports that Federal Reserve Bank of Philadelphia
President Charles Plosser said prices may rise 2.5 percent in
2011, a rate well above central bankers’ preferred range, and
cautioned against complacency on inflation.
“The economy may be at greater risk of inflation than the
conventional wisdom indicates,” Plosser said in a speech
yesterday in New York. “While inflation expectations appear (sic) to
remain anchored, we should not become sanguine about our
credibility. It can be easily lost.”
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