Fed Policy Makers Differ Over Policy as Inflation Picks Up

Federal Reserve policy makers aired their differences over how to tackle accelerating inflation before a report showed the cost of living in the U.S. rose in March for a ninth consecutive month.

Fed Governor Elizabeth Duke said in Washington yesterday that rising commodity costs aren’t resulting from U.S. monetary policy and don’t warrant higher interest rates, while Fed Governor Daniel Tarullo said he sees no sign of inflation spreading more broadly. Richmond Fed President Jeffrey Lacker and Philadelphia’s Charles Plosser indicated they’re more concerned about prices, with Lacker saying the central bank must tighten credit before inflation gains speed.