September 18, 2011

WASHINGTON (AFP) – A fight looms Tuesday in the US Federal Reserve as policy makers wrestle over whether the threat of inflation should prevent them from feeding more money into the economy to boost jobs.

While one camp on the Federal Open Market Committee is believed to favor a hopefully stimulative economic measure known as “Operation Twist,” a group of vocal dissenters could block that, shouting the alarm that inflation is picking up.

Stock up with Fresh Food that lasts with eFoodsDirect

Until data released on Thursday showed a surge in inflation, markets and economists had mostly expected that the FOMC would adopt Operation Twist — a 1961 bond-buying tactic named after the popular rock and roll dance of the time.

Read full article

Related Articles