Fed's Pianalto sees further U.S. job growth ahead

CHICAGO | Tue May 24, 2011 12:34pm EDT

CHICAGO May 24 (Reuters) - The U.S. economy is on firmer footing despite recent oil price spikes, and employers continue to create more jobs, Cleveland Federal Reserve President Sandra Pianalto said in the bank's annual report released Tuesday.

"Employers are creating new jobs, and there are signs that job growth will accelerate as the year progresses," she said.

But inflation fears also mounting, she said, threatening to undermine those gains.

"I am also keeping a close eye on signs of inflation," she wrote. "Without price stability, it is highly unlikely that our economy can achieve and sustain maximum employment. "

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