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SILVERBEARCAFE Fri, 30 May 2008
The US Federal Reserve would likely increase interest rates "sooner rather than later" if inflation worsens, even if the U.S. economy remains weak, Dallas Federal Reserve Bank President Richard Fisher said on Wednesday.

Fisher is one of the Fed's leading policy hawks, urging the central bank to focus more on the need to quell inflation, which he termed "a sinister beast."

He has tallied three straight dissents against the Federal Open Market Committee's moves to lower benchmark lending rates.

"Growth cannot be sustained if markets are undermined by inflation," Fisher said. "Stable prices go hand in hand with achieving sustainable economic growth."

At this point financial markets believe the FOMC will leave its federal funds rate steady at 2 percent in June. The rate has been cut from 5.25 percent since mid-September to shore up sagging economic growth. Markets also guess that the Fed will start raising rates in the fourth quarter.

Fisher did not discuss the near-term economic outlook but focused on "the mother of all financial storms" brewing from unfunded liabilities from Medicare and Social Security, and its intersection with monetary policy.

"Deficits ... create political pressure on central bankers to adopt looser monetary policy," Fisher said, vowing that the Fed would not cave in and "run the printing presses."

"Even the perception that the Fed is pursuing a cheap-money strategy to accommodate fiscal burdens, should it take root, is a paramount risk to the long-term welfare of the U.S. economy," he said. "The Federal Reserve will never let this happen. It is not an option. Ever. Period."

Fisher said the Fed's various term credit facilities launched since the global credit crunch erupted in 2007 "are helping restore confidence."

By contrast, he said, the long-term fiscal prospects for the United States, if not tackled head-on "will be unimaginably more devastating to our economic prosperity than the subprime debacle and the recent debauching of credit markets."

FOOL
Can you think of any unpleasant, traumatic ordeals you'd pay to undergo? For many people, a trip to the dentist comes top of the list. Millions of us are now dipping into our savings - and even getting into debt - to keep our gnashers in good nick.

Worryingly, recent figures from dental clinic Dentale indicate that over 11 million Britons didn't visit their dentist in the past two years - because they couldn't afford it.

So if you're struggling to afford dental costs, what are the options?

Here, I'm going to have a look at why it's so difficult to get affordable dental treatment, what NHS care is still available, and what the other options are.