11. Brisk economic growth can cause supply bottlenecks that lead to faster inflation, which erodes the value of fixed interest and principal payments. 12. But most of the analysts said this did not portend faster inflation. 13. By leaving rates unchanged again the Fed signaled it sees little threat of faster inflation. 14. Chairman Alan Greenspan repeated last week that the central bank may raise rates even before signs of faster inflation appear. 15. Economists say that upbeat consumers and a booming jobs market will keep the economy from slowing much, increasing the risk for faster inflation. 16. Even as Clarke urged Conservatives to back spending cuts to make room for possible tax reductions, he faced higher spending because of faster inflation. 17. Economists are concerned that rising wages and low unemployment could set off faster inflation and prompt the Federal Reserve to raise benchmark lending rates. 18. Economists are concerned that rising wages and low unemployment could set off faster inflation. 19. Faster inflation is bad news for bond investors because it means their securities will hold less of their value over time. 20. Fed Chairman Alan Greenspan hinted again today that he may be ready to raise rates, even without signs of faster inflation. |