Fed won't let budget gap push up prices- Gramlich

Federal Reserve Board Governor Edward Gramlich said on Thursday 23 September that credible monetary policies can prevent large government budget gaps from stoking inflation, and expressed optimism that would be the case in the United States.

Following a speech Gramlich said in a question and answer session, "It could if you don't have a credible central bank."

"I think we (the Fed) have enough freedom of action that, even if deficits are large, we can prevent that from becoming inflationary," h