61. Developing country debt declined, following U.S. bonds which back many Brady securities, amid concern reports next week could show accelerating inflation, traders said. 62. Earlier this month, a Columbia University inflation index, watched closely by Fed officials, showed the threat of accelerating inflation receded further during August. 63. Even Fed officials have said the economy may be able to continue expanding without sparking accelerating inflation. 64. Fed members said in recent weeks the economy is growing at an pace that risks accelerating inflation. 65. Fed officials have recently expressed concern that wage pressures will translate into accelerating inflation. 66. Fed Chairman Alan Greenspan warned Congress again yesterday that a preemptive rate increase might be needed to forestall accelerating inflation. 67. Fed officials are watching labor costs for signs of accelerating inflation. 68. Faster consumer spending increases the risk of accelerating inflation that can erode the value of bonds. 69. Federal Reserve Bank of New York President William J. McDonough said monetary policy-makers should move pre-emptively, even before signs of accelerating inflation emerge. 70. Federal Reserve Chairman Alan Greenspan signaled today that a Fed interest-rate increase is likely by saying tight U.S. labor markets are increasing the risk of accelerating inflation. |