Minneapolis Fed Bank Chief is Worried Inflation is Too Low

WASHINGTON (AP) — One of three Fed officials who dissented in the Fed's policy decision this week is warning that the central bank is taking an "unacceptable" risk by not paying more attention to the dangers posed by low inflation.

Narayana Kocherlakota, the president of the Fed's regional bank in Minneapolis, says that the Fed's failure to respond to weak inflation "runs the risk of creating a harmful downward slide in inflation" similar to the problems facing Japan and Europe.

Meanwhile, Philadelphia Fed President Charles Plosser, another dissenter at this week's meeting, is unhappy for a different reason. He feels the Fed is making a mistake by saying it will still be patient in deciding when to begin raising interest rates.