Cleveland Fed President Discounts Link of PPI to C
Milan, Italy, February 21--There is little direct link where a rise in producer prices leads to upward pressure on consumer prices, Federal Reserve Bank of Cleveland President Sandra Pianalto said on Monday, adding she sees little price risk ahead.
Core U.S. producer prices rose at their fastest pace in six years in January, raising the prospect the Fed might start making larger increases in interest rates.
But Pianalto, asked by reporters about the January surge in the U.S. Producer Price Index, said one cannot read too much into one months' release of any data and she saw no increase in inflationary pressures.
"There is not a lot of correlation between the PPI and the CPI (Consumer Price Index) and ... while I continue to stay alert and aware of whether I see an increase in inflationary pressures, I don't see them at this time," she said.
Pianalto said the United States economy is on a sustained economic growth path, Federal Reserve Bank of Cleveland president Sandra.
She alto told a conference on European and American models for growth U.S. business people remained confident and bankers saw an increase in commercial lending.
"I believe that the U.S. economy is on a sustained economic growth path," she said in a question and answer session.
