Problem
According to the March 16, 2010, FOMC statement, "The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions [...] are likely to warrant exceptionally low levels of the federal funds rate for an extended period." As the U.S. economy was already showing some signs of recovery by the first quarter of 2010, some people warned that the Federal Reserve actions might increase expected inflation. Explain why low levels of interest rates might fuel inflation expectations and what the Federal Reserve should do to avoid the latter.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.