Is Too Little Inflation Exactly the Problem?

Is Too Little Inflation Exactly the Problem?
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Prices aren't going up very much. Should we celebrate?

Not really. Inflation that's too low could be a bad sign for the U.S. economy, and some Federal Reserve officials are starting to get concerned.

Speaking to reporters on Wednesday, St. Louis Fed President James Bullard pointed to the Fed's preferred measure of inflation -- personal consumption expenditures, minus food and energy -- which recently has shown that prices are up 1.3% over a year ago.

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