Outlook good for economy, but inflation remains a risk

The continued expansion of the US economy appears to be on track with core inflation remaining moderate, according to Roger Ferguson, vice chairman of The Federal Reserve Bank. Speaking at the Howard University Economics Forum in Washington last month, Ferguson said recent data suggests economic activity in 2006 is off to a solid start. He says: "Overall, the fundamentals appear sufficient to support continued economic expansion. Underlying productivity growth remains strong, the financial positions of households and businesses remain conducive to spending and if we have no further ru...