The statement issued today after the end of the two-day FOMC meeting offered no hint that the recent signs of a renewed economic slowdown might tempt the Fed to launch another round of large-scale asset purchases. As Chairman Ben Bernanke explained in his post-meeting press conference, the Fed only acted last year because the low and falling rate of inflation suggested that deflation was becoming a serious threat. The subsequent rebound in core inflation suggests that threat has eased, at least for now.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services