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The government wanted transfers to be pegged to projected inflation plus 1.5%, indefinitely.
On Wednesday it said it would stay there "well past the time" that unemployment drops below 6.5%, "especially if projected inflation continues to run below" its 2% target.
As the government tries to spur growth, spending will rise nearly twice as fast as the projected inflation rate of 6percentt next year, Mr. Boediono said.
He said projected inflation for the year "is still quite modest and the projected growth rate for the year is still strong".
The Department of Agriculture recently released its report on what it will cost to raise a child born in 2011: middle-income parents of a child born last year can expect to spend about $234,900 $295,5600 if projected inflation costs are factored in*) for food, shelter and other necessities to raise a child over the next 17 years.
She also reiterated the Fed's commitment to keep the federal funds rate at close to zero per cent until "well past the time that the unemployment rate declines below six and a half percent, especially if projected inflation continues to run below the two per cent goal".
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With interest rates at their current level of 6%, it projects inflation running below the 2.5% target rate throughout 2001.
The argument does not seem to have swayed the Fed's monetary-policymaking committee, which continues to project inflation of at most 2% until the end of 2016.
All this despite the fact that the non-partisan Congressional Budget Office projects inflation over the next 10 years averaging less than 1.7% annually – lower than any decade for more than half a century.
One reason for the much higher Pentagon forecasts is that the cost is built up to include every contingency, including projecting inflation over the whole production cycle.In other words, the Pentagon and its contractor calculate future costs in completely different ways.
Although the report said inflation would decline to 2 to 2.5percentt next year, it warned that at those projected levels inflation would have edged up from where it was in 1997 and 1998, when it was consistently under 2percentt.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com