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Low inflation fuels caution at Fed over rate rises
A number of top Federal Reserve officials want more convincing evidence that U.S. inflation is on a healthy upswing before embarking on what they expect will be a very gradual course of interest rate increases. Policymakers at the central bank this week began to flesh out their thinking on the likely path for U.S. interest rates, with several calling for restraint and suggesting a willingness to push the economy past full employment to ensure a robust recovery and vanquish deflation risks. William Dudley, the head of the powerful New York Fed, who is normally aligned with thinking at the central bank's Washington ... (full story)
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