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Continued: Minneapolis Fed chief dissents as rate outlook shifts

  • Article by: ADAM BELZ , Star Tribune
  • Last update: March 21, 2014 - 10:03 AM

The labor market remains weak. The share of adults with jobs has barely increased since the recession, and many people have stopped looking for work, driving the decline in the official unemployment rate.

Inflation also remains sluggish. The Fed’s preferred measure of inflation rose just 1.1 percent during the 12 months ending in January, well below the 2 percent annual pace the Fed has established as its target. Officials see this as a symptom of the broader economic malaise, and they expect inflation to increase alongside the economy. But the Fed in recent months has communicated growing concern about the trend, highlighting in policy statements that it will act if necessary to raise inflation back to what it regards as a healthier pace.

 

The New York Times contributed to this report.

Adam Belz • 612-673-4405 Twitter: @adambelz

 

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