It is not just the Bank's technical ability that will be tested, but its fortitude.In the run-up to the last election, in 2001, there was no such problem: the economy was weakening, inflation was subdued and the government had only just begun to open up the spending taps.
Weakening inflation would give the Fed more leeway to confront a slowing U.S. economy with interest-rate cuts.
Even though data on consumer spending and housing suggests economic activity picked up early in the third quarter, business spending is weakening and inflation is slowing.
The Congress Party's grip on India is weakening as inflation and fuel prices rise and the economy slows, and securing an ally is crucial to staying in power.
Official inflation ran at 9.7percentt in March but many private sector analysts argue that the government is grossly understating that figure to assuage the international financial community over a peso that is being weakened by inflation.
WASHINGTON (Pedro da Costa and Mark Felsenthal) - Federal Reserve Chairman Ben Bernanke said on Wednesday the central bank is ready to ease monetary policy further if the economy weakens and inflation moves lower, hinting policymakers were actively mulling further stimulus.
And a 2012 IMF working paper suggests that reining in inflation can increase income inequality by compressing wages while allowing asset prices to soar.More worryingly, the weakening link between inflation and unemployment could breed complacency about rising joblessness.
Chinese economists argue that, over time, America will reduce its debt burden through inflation, weakening the dollar and costing China a fortune.Moreover, through its investments in US Treasury bonds, China is in effect financing America's continued military predominance.
However, the competitive benefits of regulation Q were quickly undermined by rising inflation, weakening the finances of savings institutions and eventually resulting in the savings and loan crisis.
The figures show that, despite a weakening dollar, inflation remains a remote concern as the American economy struggles to pull itself out of a deep recession.
And banks will be able to borrow as much as they ask for in the ECB's regular weekly (and three-monthly) operations, subject to meeting collateral requirements, until the end of 2016 rather than mid-2015, as was previously the case.The need for additional stimulus had been reinforced by recent figures showing a faltering recovery in the euro zone and a further weakening in inflation.
