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With inflation elusive, two Fed policymakers lay out a welcome mat
Worried that current low inflation expectations will sap the U.S. central bank’s ability to combat a future downturn, two Federal Reserve officials on Thursday made an unusual pitch: if inflation rises unexpectedly, the Fed should lay out the welcome mat. “It might take some surprise, that maybe wage growth all of a sudden does pick up, and then that leads to high inflation,” Minneapolis Fed President Neel Kashkari told reporters after a talk at an economic symposium put on by the University of California, Santa Barbara. “And then, importantly, we shouldn’t respond very much.” Speaking in Washington, Fed ... (full story)