1.   The larger is the interval CE, the greater are the inflationary dangers inherent in removing Keynesian unemployment by a traditional demand expansion.

2.   But in deference to a Fed tradition of linking wage increases and price increases, he is likely to mention the potential inflationary danger of a prolonged labor shortage.

3.   By that rule, the economy now would be deep into a zone of inflationary danger, but there are almost no signs that price increases are actually accelerating.

4.   However, because Federal Reserve Chairman Alan Greenspan has been warning repeatedly about inflationary dangers in the hot U.S. economy, mortgage rates have already risen.

5.   Ms. Yellen basically said that the economy had entered an inflationary danger zone, with the labor market quite tight.

6.   Recent wage settlements and the weak economy also pose no inflationary dangers, he said.

7.   The currency largely recovered, but the plunge served as an alarm to renewed inflationary dangers and as a pretext for personnel changes.

8.   The weak euro has aggravated inflationary dangers because it has pushed up the cost of imports, most particularly of oil.

9.   However Bundesbank president Hans Tietmeyer said he saw no inflationary danger from the rate cuts, which he hoped would lead to lower capital market rates.

10.   Analysts said the decision does not necessarily rule out a rate increase next week in case of US statistics pointing to a potential inflationary danger.