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Muted inflation, wages keep Fed policymakers cautious


By Ann Saphir and Richard Leong(Reuters) - A day ahead of Federal Reserve Chair Janet Yellen's testimony to Congress on the state of the U.S. economy, two of her colleagues cited low wage growth and muted inflation as reasons for caution on further interest rate increases. In recent months U.S. inflation has moved further below the Fed's 2 percent target even as the labour market, as measured by a 4.4 percent unemployment rate, has strengthened. That disconnect has vexed policymakers, but Yellen has said the retreat in price pressures is likely temporary and signalled she is prepared to ...

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First Published: Wed, July 12 2017. 01:15 IST