Fed's Mishkin on inflation dynamics

In the speech 'Inflation dynamics' given on 23 March Frederic Mishkin of the Federal Reserve said core US inflation is likely to drop to 2 percent from about 2 1/4 percent, but pushing it below that may require higher interest rates.

"I am less optimistic about the prospects for core PCE inflation to move much below 2 percent in the absence of a determined effort by monetary policy," Mishkin told a conference organised by the Federal Reserve Bank of San Francisco.

Mishkin said he is "reasonably

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