Even though the recession is most likely over, the economy has certainly not become healthy again due to huge unemployment figures, weak consumer spending, and a variety of other economic issues. However, one potential problem that many analysts have begun pointing to is the risk of inflation, a risk that has Federal Reserve officials split concerning whether or not inflation could become a serious problem.
Fed officials voiced their opinions on the risk of inflation during the September 22-23 Federal Open Market Committee Meeting, the minutes for which were released today. A big question that arose during the meeting concerned whether …read more

According to Federal Reserve Vice Chairman Donald Kohn, the economy is possibly showing signs of forthcoming stability. However, Kohn is not so optimistic about the strength of the economy, even after it has recovered, and has confirmed that rate hikes will not be coming any time soon.
Kohn’s comments on the economy, which he made at a conference at Princeton University, are not quite as optimistic as those made by the Federal Reserve’s staff in late April. Still, Kohn defended the governmental program to buy up toxic assets as necessary to avoid an economic crisis that could have been even worse.
As …read more