Fed's Lacker says US can cope with Katrina shock

The U.S. economy can absorb the aftermath of Hurricane Katrina because the Federal Reserve will not repeat the mistake of the 1970s of allowing an energy shock to fuel inflation expectations, Richmond Fed chief Jeffrey Lacker said on Friday 2 September.

"We are in a different environment now than we were in the 1970s. The way the economy responded (then) had to do with what people thought about inflation," Richmond Federal Reserve President Jeffrey Lacker told Reuters in an interview.

"They

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