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Lower Inflation in 2007?

 

Jan. 8, 2007 -- Despite a downturn in the housing market, cheaper energy prices will help ease inflation in the year ahead, Federal Reserve vice chairman Donald Kohn said in a speech Monday at the Atlanta Rotary Club.

Kohn said economic growth will be moderate in 2007, amid "well-anchored inflation expectations" and strong labor and product markets.

Despite the brighter outlook, Kohn said it was too early to abandon guards against inflation in the new year.

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