Financial Times FT.com

Fed considers setting inflation target

By Krishna Guha in Washington

Published: January 6 2009 21:45 | Last updated: January 6 2009 21:45

The Federal Reserve is eyeing establishing a de facto inflation target, minutes of its groundbreaking December policy meeting revealed on Tuesday.

The idea would be to shore up the public expectations of positive inflation and so make it less likely that a deflationary dynamic could take hold as the US recession deepens.

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