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Others fear the Fed's decision could ignite inflation down the road.
The effect was to reduce the level of unemployment at which strong growth would ignite inflation, he said.
Should the central bank ease too much this year and ignite inflation pressures next year, it would be forced to reverse course and begin raising rates.
If the dollar falls too far too fast, it could ignite inflation and influence the Federal Reserve to raise interest rates so high as to weaken the economy.
The Fed said it now viewed the risks to the economy as evenly balanced between sustained weakness and growth so strong that it could ignite inflation.
Mr. Meyer, for example, has long asserted that the combination of 4percentt unemployment and moderate-to-strong growth will eventually ignite inflation.
Similar(31)
The most serious threat, though, is that we re-ignite inflation.
If the current downbeat mood of the markets persists, it could eventually present central bankers with a difficult choice: lower interest rates to re-ignite growth, which could also threaten to re-ignite inflation, or raise rates to fight inflation, which could smother growth.
Productivity increases allow the economy to grow faster without igniting inflation.
Unemployment in the late 1990s eventually dropped to 4% in the US, without igniting inflation.
There is considerable debate among economists about how fast the economy can grow without igniting inflation.
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