The Fed is Unlikely to Raise Rates, Despite Skyrocketing Food & Fuel prices
Submitted by bobbyw24 on Thu, 01/27/2011 - 11:42in
The Federal Reserve will continue to focus on low underlying inflation in pushing aggressive measures to support the U.S. recovery, even as European authorities fret about rising energy and food prices.
With the U.S. economy only now emerging from a period of inflation so low that policy makers were worried about the risk of a damaging downward spiral of falling prices, the Fed, which opens a two-day meeting on Tuesday, is on a different track than the European Central Bank.
Comments by ECB President Jean-Claude Trichet over the weekend urging central banks to pay attention to inflationary threats from rising commodity prices led many to believe the ECB may be moving toward rate hikes.
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