PHILADELPHIA -- Edward Boehne, president of the Federal Reserve Bank of Philadelphia, said the central bank's recent tightening moves will allow for sustainable, noninflationary growth.

He said the Fed has "largely removed" the accommodative stance that prevailed through 1993.

Addressing a financial planning conference, Mr. Boehne said that while conditions in the financial markets influence monetary policy, the Fed "ultimately must focus on economic fundamentals, [which] at this stage underscore the wisdom of the shift toward a more neutral monetary policy in recent months - a policy that allows the economy to cruise at a noninflationary speed consistent with sustainable growth of the economy and jobs."

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