Federal Reserve is now playing a high-risk game with inflation

The US Federal Reserve is increasing its balance sheet by another $1 trillion, including $300bn of Treasury bonds, the Federal Open Market Committee said on Wednesday.

By Martin Hutchinson, breakingviews.com
Last Updated: 8:55AM GMT 19 Mar 2009

See the vido at the link below

Yet the pace of US economic decline seems to be slowing, while deflation is nowhere visible. Fed policy is now high-risk, and resurgent inflation may strike sooner than expected.

The FOMC said it expects inflation to remain subdued with some risk it could "persist for a time below rates that best foster economic growthâ€