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December 5, 2004 04:43 PM

Fed: Inflation Not Setting Off Alarms


Excerpt: The Federal Reserve, while remaining watchful as prices and interest rates tick higher, is holding to its mantra that rate increases will be "measured," senior Fed officials indicated on Friday.


The Federal Reserve (news - web sites), while remaining watchful as prices and interest rates tick higher, is holding to its mantra that rate increases will be "measured," senior Fed officials indicated on Friday.

They also said they expect solid economic growth, although uncertainty still seems to be restraining firms from hiring in the numbers usually seen in an economic expansion.

Earlier on Friday, the government reported just 112,000 jobs were created in November, well below economists' expectations.

Philadelphia Fed President Anthony Santomero said the central bank needs to remain watchful on inflation, although there were not a lot of "flashing lights" at present.

"Honoring our commitment to price stability is essential to ensuring the longevity of the expansion," Santomero told the Philadelphia Fed's annual policy forum. He added that the Fed could continue to move at a "measured" pace.

"My own view is, we will be data-driven in terms of how we proceed from here. As the economy expands and can be self-sustaining with a lower level of stimulation, we can withdraw some of that stimulation in monetary policy."

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Fed Sees Growth, Measured Rate Hikes (December 05, 2004)
The U.S. economy should grow about 4.0 percent next year, giving the Federal Reserve (news - web sites) room to continue raising interest rates at a measured pace, Philadelphia Fed President Anthony Santomero said on Friday. In prepared remarks to the Philadelphia Fed's annual policy ...
Weak Employment Rport Casts Doubts Over US Economic Strength (December 05, 2004)
A weaker-than-anticipated report on the US labor market, showing just 112,000 jobs added in November, cast fresh doubts over the pace of growth of the world's largest economy. The slowdown in nonfarm payroll job creation -- seen as essential to sustainable economic growth -- came ...
Balancing Act On The Buck (December 04, 2004)
President Bush has another Texas-sized challenge on his hands. He wants to navigate an already weaker dollar low enough to shrink the trade deficit and rein in concerns that the nation's excessive borrowing and spending runs the risk of a global economic implosion. And yet ...
Job Growth Is Well Below Wall Street Forecasts (December 03, 2004)
WASHINGTON, Dec. 3 - The economy added 112,000 payroll jobs in November, the Labor Department reported today, far fewer than the month before and not enough to keep up with growth in the adult population. The gain was well below Wall Street forecasts for an ...

Read all 21 posts in the same category of Economy:

U.S. Quiet on China Trade Tax - Dec 17, 2004
Fed Raises Interest Rates for 5th Time This Year - Dec 17, 2004
OPEC Considers Output Cut to Keep Prices From Falling - Dec 09, 2004
A Plan For U.S. Energy Security? - Dec 08, 2004
Fed Heading For A Pause - Dec 07, 2004
Social Security Reform = New Debt - Dec 06, 2004
Fed Sees Growth, Measured Rate Hikes - Dec 05, 2004
Weak Employment Rport Casts Doubts Over US Economic Strength - Dec 05, 2004
Balancing Act On The Buck - Dec 04, 2004
Job Growth Is Well Below Wall Street Forecasts - Dec 03, 2004
Fed Reports Growth In 11 Of 12 Regions - Dec 02, 2004
Inflation Under Control, Fed Gov. Says - Dec 02, 2004
Global Forecasts for 2005 Growth Are Reduced - Nov 30, 2004
Borrowing For Social Security Plan? - Nov 28, 2004
No Longer Top Dollar? - Nov 26, 2004
Don't Worry ... Don't Be Happy - Nov 26, 2004
Is Another Recession Brewing? - Nov 25, 2004
Inflation Is Tame, Right? - Nov 24, 2004
The Dollar Is Down, But Should Anyone Care? - Nov 21, 2004
Bush Sets Plans To Revamp Taxes, Social Security - Nov 04, 2004