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“With substantial resource slack likely to continue to dampen cost pressures and with longer-term inflation expectations stable, the committee expects that inflation will remain subdued for some time.”
“The U.S. Federal Reserve is widely expected to hold borrowing costs at the record-low in September and is anticipated to maintain its $1.75T asset purchase program to encourage a sustainable recovery, and long-term expectations for higher interest rates may drive demands for the dollar as market participants speculate the central bank to tighten policy in 2010.”
