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Despite fall in joblessness, US inflation may not rise

Low labour force participation and the "new normal" of available supply of cheap energy and labour globally may force the US Fed to reverse course on rate hikes

Ms Yellen has taken into consideration the possibility that she could once again be proven wrong and that inflation would not pick up.


FOR several months, they have been predicting that inflation was around the corner. After all, the Great Recession was over and the recovery of the American economy was accelerating slowly but surely.

Indeed, reflecting the growth in the economy, the unemployment rate...

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