File - In this Thursday, July 13, 2017, file photo, Federal Reserve Chair Janet Yellen testifies on Capitol Hill in Washington, before the Senate Banking Committee. (AP Photo/Pablo Martinez Monsivais)
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As top central bankers gather in Wyoming this week, their relief about a stronger global economy will be tempered by a growing unease that inflation remains inexplicably low. Federal Reserve Chair Janet Yellen and European Central Bank President Mario Draghi will be among the officials addressing this year's installment of the annual conference hosted by the Kansas City Fed. Still, inflation may be the most pressing riddle facing central banks, which are missing price mandates.U.S. inflation fell to 1.4 percent in June, based on the Fed's preferred gauge, and consumer prices in the euro area – now at 1.3 percent – have wavered since the start of the year. Both central banks shoot for 2 percent inflation, although the ECB formally aims below, but close to, that level.Those glacial price gains come even as unemployment has dropped steadily, more than halving in the U.S. to 4.3 percent since its post-recession peak and declining to 9.1 percent from a high of 12.1 percent in the euro area. The Fed has already signaled that it will probably get moving on unwinding it's $4.5 trillion balance sheet in September, and Yellen could solidify that view.
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