With the economic recovery starting to lose steam, the Federal Reserve has the unenviable task of trying to figure out which “flation” battle to fight. Inflation or deflation? The Fed will hopefully provide more clues following its policy meeting next Tuesday. It’s all but certain the central bank will once again leave its benchmark federal funds rate in a range of 0 to 0.25% – the range it has maintained since December 2008.
The Fed’s great something-flation debate
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