Inflation moves up on Bernanke's worry list

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Inflation moves up on Bernanke's worry list

Post by Admin on Tue Jun 03, 2008 4:47 pm

Federal Reserve Chairman Ben Bernanke
has moved inflation up on his list of worries, suggesting more
pointedly than ever that the time for cutting interest rates is over in
view of soaring oil and commodity prices and a weakened dollar.

Although the country's economic growth bruised by housing, credit and
financial debacles is still fragile, Bernanke on Tuesday expressed
hope for some improvement in the second half of this year.
At the same time, he sounded a notably louder warning against
inflation threats. To this end, he raised his biggest public concern to
date about the slide in the U.S. dollar, saying it has contributed to
an "unwelcome rise" in inflation.

The Fed chief's fresh assessment delivered via satellite to an international monetary conference in Spain appeared to mark a subtle shift in Bernanke's views about economic risks.
Despite the rising concerns about inflation, Bernanke signaled the
Fed is inclined to leave rates where they are. Boosting them could
further weaken the economy's delicate state.
However, some analysts said Bernanke might be taking a baby step
toward laying the foundation for an eventual rise in rates possibly
later this year or early next year if inflation were to flash signs
of getting dangerously out of hand.

Source Yahoo News

Translation-The rise in the price of gas reflects the dropping in value of our dollar, GATAS (Gee, aint' that a suprise?)!

They rob from us, our dollar devalues and they admit it's inflation. If only people really knew what inflation is.

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