From today’s Washington Post:
Bernanke dismisses inflation concerns, says unemployment turnaround will take years
The economy is poised to grow more rapidly this year, Federal Reserve Chairman Ben S. Bernanke said Thursday, dismissing fears that rising fuel prices will trigger broad-based inflation. But he emphasized that it will still take several years before the unemployment rate comes down to normal levels.
Speaking at the National Press Club and, in a rare step, taking questions from journalists, Bernanke gave a mixed assessment of the nation’s economic prospects but left little doubt that he views getting the job market on track as the top priority for the Fed.
“Until we see a sustained period of stronger job creation, we cannot consider the recovery to be truly established,” Bernanke said.
He also appeared unconcerned that the recent surge in the prices of commodities means the nation is on the verge of a problematic outburst of inflation, saying that “overall, inflation remains quite low.”
Taken together, the comments suggest that despite signs of economic growth and inflation risks, the Fed will not reconsider anytime soon its policies of keeping interest rates ultralow and flooding the economy with cash.
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Perhaps Bernanke should have read The Wall Street Journal before making those remarks. Here are the headines for stories that appeared in yesterday’s edition:
“Steel-Price Rises Pressure Supply Chain” (B1)
“Rising Costs Squeeze Appliance Makers” (B6)
“Fearing Inflation, Firms Stocking Up” (C1)
“A Perfect Storm for Wheat Market” (C12)
“Sugar Prices Soar to New Heights” (C12)
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Here’s one more news headline from yesterday:
“Gold Prices Rocket Higher After Bernanke Comments” (RTT News)
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