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Fed Vice Chair Randal Quarles said Wednesday the U.S. central bank might have to reconsider its policy stance if inflation expectations remain elevated for a prolonged period, as MNI reported last week.
"If at this time next year you were still seeing surveys of inflation expectations substantially over 2-½% -- and that is not what I expect -- then I might be saying, ok the world seems to be evolving in a different way and maybe that's long enough that that starts to durably affect expectations," Quarles said.