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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: Jim Willie CB who wrote (29310)4/1/2005 5:56:06 PM
From: stockman_scott  Read Replies (2) of 110194
 
Inflation contained: Fed's Moskow
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April 01, 2005

(Reuters) U.S. inflation is still ``well contained'' overall despite anecdotal evidence of increased pricing pressures, Chicago Federal Reserve President Michael Moskow said on Friday.

It is important to look at slack in the economy when assessing the inflation picture, Moskow said in an interview on CNBC.

Moskow said the Fed looks at the economy and data on an ongoing basis as it shapes monetary policy.

In that vein, Friday's surprisingly weak March payrolls report is only one month's data, he said, adding that payrolls have been up over the past year.

Growth of jobs is important for the U.S. economic recovery to be self-sustaining, and the labor force could see increased participation as jobs become more available, he said.

Moskow said relatively low long-term U.S. interest rates are still a puzzle, but less of a ``conundrum'' than a few weeks ago when Federal Reserve Chairman Alan Greenspan used that term to ponder the state of the market.
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