As economic data points toward recovery, the Federal Reserve now has to worry about steering the country away from 1970s-style inflation, the Washington Post reported.

Fears of inflation have heightened as the Fed has created more than $1 trillion in new money in an effort to revive the economy and prop up the financial system. It now must determine the best time to withdraw that money from circulation, which some analysts say may come down to deciding between boosting credit markets now and fighting inflation in the future.

In a recent public appearance before the congressional Joint Economic Committee, Fed Chairman Ben Bernanke told lawmakers that the economy still needs support but that “we understand the necessity of winding this down at the proper moment so we will not have an inflation problem at the other side.”

Contributors to inflation include a rise in energy prices, greater demand than supply and too much money in circulation. Fed officials say much of the money it has created is sitting in bank reserves, but some believe inflation could become a problem if that money gets out quickly once the economy recovers. Some analysts believe that signs the recession is starting to ease mean it’s time for the Fed to end some of its emergency lending programs.

Fears also have increased after the government was criticized for keeping interest rates too low after the 2001 recession, which helped fuel the housing bubble that created this recession.