The Fed Is Betting Inflation Expectations Will Stay Controlled. It’s a Gamble.

Federal Reserve officials believe low and stable price expectations give them room to heal the job market. But what if outlooks change?

By Jeanna Smialek

Turn on the news, scroll through Facebook, or listen to a White House briefing these days and there’s a good chance you’ll catch the Federal Reserve’s least-favorite word: Inflation. If that bubbling popular concern about prices gets too ingrained in America’s psyche, it could spell trouble for the nation’s central bank.

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