Will US Government twist:? Fed inflation hawks likely to temper pro-growth moves

The threat of inflation is expected to temper any decisions on new pro-growth measures when Federal Reserve policy-makers meet Tuesday on the US economy's poor health.

With growth stagnating and unemployment stubbornly above nine percent, analysts say they expect the Federal Open Market Committee to take some action to stimulate the US economy. But it is not clear how much stretching its meeting to two days will help the FOMC overcome divisions and send a clear signal of intent or even confidence, which analysts say the markets sorely need.

While one camp on the Federal Open Market Committee is believed to favor a hopefully stimulative economic measure known as "Operation Twist," a group of vocal dissenters could block that or limit its size, shouting the alarm that easy money is pushing up consumer prices.

For more: AFP: Fed inflation hawks likely to temper pro-growth moves