Bullard warns weak inflation may put brakes on QE tapering

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The Federal Open Market Committee (FOMC) "would not normally remove policy accommodation in an environment where inflation is below target and is projected to remain there", Federal Reserve Bank of St. Louis president James Bullard said during an event in Louisville, Kentucky, yesterday.

A key inflation issue for the current quantitative easing (QE) tapering debate is whether the current low levels of inflation will move up toward 2% in the coming months and quarters, he added, noting that if

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