Fed's Kelley warns of excessive US slowing risk

US Federal Reserve governor Edward Kelley said on Friday the central bank was closely watching the risks of an excessive slowdown as the world's top economy moves to a less inflation-prone rate of expansion.

In an interview, Kelley said the much-awaited deceleration in US growth had finally materialised.But, while he warned of continued inflation risks, he said policymakers were on high alert for signs of a sharp economic contraction, signaling the Fed is open to the idea of cutting interest

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