Fed declares victory on deflation risks

The Federal Open Market Committee (FOMC) on Wednesday signalled that it no longer believes a serious threat of deflation exists.

In its post-meeting statement, the committee dropped its reference to deflation, which appeared in the first three statements issued this year. Previously, the FOMC had said: "In light of increasing economic slack here and abroad, the committee expects that inflation will remain subdued. Moreover, the committee sees some risk that inflation could persist for a time