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The Fed, in expectation of a higher inflation rate, could respond with rate increases that might stifle the expansion.
Mr. Trichet warned in stark terms that the bank would respond with rate increases if rising energy and food prices passed through into wages, a phenomenon known as second-round effects on inflation.
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Insurers responded with rate increases far above what they otherwise would have imposed.
Steffen Schoch, managing director of a regional trade body in the state of Baden-Württemberg, whose capital is Stuttgart, said: "It remains to be seen how Germany will respond with a rate of 29.4%.
Inflation accelerated to 6.4% in the third quarter, prompting the Philippine central bank (Bangko Sentral) to respond with a rate hike of 50 basis points, its largest in a decade.
If the Fed were to then respond with higher rates, it would "prevent labor markets from recovering fully and so would not be consistent with the dual mandate .It's hard to imagine the Fed standing still and risking higher inflation out of some bet that an army of hidden surplus labour will flood back in.
Research is finding that young adults often respond with better survival rates and lower relapse rates when they are treated using pediatric protocols.
If inflation rises next year, the Fed would probably respond with faster interest rate increases, which have tended to cause markets and the economy to choke in the past.
Metabolite and hormone profiles of lambs in negative energy balance, supplemented with duodenally available protein, revealed that SFM animals did not respond with an accelerated rate of fat mobilization or maintain protein mass due to available N. This was particularly evident from the leptin profiles, which indicated higher circulating leptin levels for SFM compared to STR animals.
As long as Britain retains its own currency, the Bank of England can respond with lower interest rates.
Although the European Central Bank will likely respond with an interest-rate cut in December, this was not enough to cheer investors in the current climate.
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