WASHINGTON - The Federal Reserve will continue to guard against a resurgence in inflation to protect the gains that have showed up in recent months, Fed Governor Edward Kelley said yesterday.

Kelley, in a speech to financial analysts in New Orleans, said the main contribution the central bank can make is to continue seeking to foster stable prices. "If the Fed fails to do this, there is no other institutional way to hold inflation in check and thereby meet this precondition for long-term sustainable growth," he said.

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