May 18, 2011

WASHINGTON (AFP) – The US Federal Reserve still views higher inflation as only temporary as the economy muddles through a weak recovery from recession, the central bank reported Wednesday.

According to the minutes of the April 26-27 meeting of the policy-setting Federal Open Market Committee, the participants “generally anticipated that the higher level of overall inflation would be transitory.”

While there had been “significant increases” in energy and other commodity prices that had boosted overall inflation, FOMC members expected price increases would ease once commodity prices stabilized.

The central bank, whose dual mandate is to fight inflation and unemployment, said that policymakers “agreed that longer-term inflation expectations had remained stable.”

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