In addition, they observe that investors may have had a benign outlook for inflation and may not have demanded much, if any, of an inflation risk premium to hold nominal securities. (newyorkfed.org)
Nonetheless, the budget documents already show much higher outlook for inflation next year, mainly as a result of the VAT rise. (channel4.com)
The Committee also decided to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that economic conditions — including low rates of resource utilization and a subdued outlook for inflation over the medium run — are likely to warrant exceptionally low levels for the federal funds rate at least through mid-2013. (alephblog.com)