SAN ANTONIO -- Federal Reserve Governor Lawrence Lindsey, one of the Fed's most outspoken inflation fighters, said there is good news on the inflation front, citing low figures in reports the past three months.

The inflation figures, he said, are "very gratifying." Mr. Lindsey's remarks came one week after the most recent meeting of the Federal Open Market Committee, of which he is a voting member.

Mr. Lindsey predicted only a small change in second-quarter gross domestic product growth of 1.6%, annualized, when a revision by the U.S. Commerce Department comes out in early September.

Many economists believe that the revision will be downward because of a large trade deficit in July. Mr. Lindsey, however, said trade in investment equipment will offset up to one-third of the trade deficit.

"It will be small, the changes they will be making overall," Mr. Lindsey said.

He spoke Tuesday night in San Antonio at a Dallas Federal Reserve Bank conference on community development.

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