What does Fed Reserve Chairman Bernanke said about inflation?
Treasuries Rise as Bernanke Sees Limited Inflation, Low Rates By Cordell Eddings and Susanne Walker July 21 (Bloomberg) — Treasuries climbed the most in almost two weeks as Federal Reserve Chairman Ben S. Bernanke said “limited inflation pressures” will allow policy makers to keep interest rates near zero for an “extended period.” Ten-year note yields touched the lowest levels in five days as Bernanke told Congress that while the economy is showing “tentative signs of stabilization,” record budget deficits may begin to pose a threat to the recovery. The central bank purchased $7 billion of Treasuries maturing between May 2016 and May 2018, part of its plan to cap borrowing costs. Sources: http://www.bloomberg.com/apps/news?
As he defended the Federal Reserve’s rescue efforts, U.S. Federal Reserve Chairman Ben Bernanke on Tuesday said inflation concerns are misguided, and reiterated to lawmakers that central-bank policy makers expect inflation to be subdued for the next two years. “I think they’re misguided in the sense that … the Federal Reserve is able to draw those reserves out and raise interest rates at an appropriate time to make sure that we don’t have an inflation problem,” Bernanke said in response to a question posed during a House Financial Services Committee hearing about inflation worries. He later added that the financial markets don’t seem to be worried about inflation. “I don’t think the financial markets are indicating a great deal of concern about inflation,” he said, pointing to long-term Treasury rates that are still “quite low.” Furthermore, Bernanke defended the Fed’s plans to purchase up to $300 billion in longer-term Treasury securities against charges that the Fed is monetizing t
By Mark Felsenthal and Alister Bull – 1 hr 36 mins ago WASHINGTON (Reuters) Federal Reserve Chairman Ben Bernanke Tuesday said the outlook for the long-suffering U.S. economy was improving, but supportive policies would be needed for some time to prevent rising unemployment from undercutting recovery. Delivering the Fed’s semiannual report on the economy to Congress, Bernanke also sought to dispel concerns the U.S. central bank’s aggressive monetary easing could end up fueling inflation, saying he was confident the Fed could pull back its extraordinary stimulus when the time was right. Sources: http://news.yahoo.com/s/nm/20090721/bs_nm/us_bernanke_fed;_ylt=AnizWhn7LV7M32.