Why Inflation Is Still A Threat

The Fed’s bottom line on inlflation is that it "is likely to be subdued for some time.” The big question: How long is “some time”?The question is beginning to divide economists, some of whom fear the Fed could stoke future inflation by sticking with its ultra-low interest rate policy for too long. The answer depends to a great extent on how much slack exists in the economy. The tighter an economy is wound up, the greater the upward pressure on prices.