For the Federal Reserve, policymaking these days is about deciding which
of two imposing evils to take on — a decidedly moribund economy or the
increasing threat that inflation poses to battered consumers.
For much of the slow slog out of the financial crisis, the
Fed
span#ExplainsLink a, span#ExplainsLink a img, span#ExplainsLink a:visited img, span#ExplainsLink a:visited { border: medium none; } which is meeting this week and will issue its
policy statement Wednesday, has managed to train its gaze on
jump-starting growth through its various
quantitative easing measures.
But recent indicators show that inflation
span#ExplainsLink a, span#ExplainsLink a img, span#ExplainsLink a:visited img, span#ExplainsLink a:visited { border: medium none; } is posing an equally daunting threat that further monetary accommodation from the Fed might serve only to aggravate.