The markets like what Bernanke had to say:
July 19 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke said policy must be mindful of the future effects of past interest rate increases while remaining on guard against ``persistently higher inflation.''
``We must take account of the possible future effects of previous policy actions -- that is, of policy effects still `in the pipeline,''' he said in the text of testimony to the Senate Banking Committee in Washington. ``The extent and timing of any additional firming that may be needed to address inflation risks will depend on the evolution of the outlook for both inflation and economic growth.''
The hope is that the Feds stay aware of the fact that inflation can keep creeping up even after the economy slows, but that eventually it will level off, so it is wise to not get too aggresive at this stage of the game.
July 19 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke said policy must be mindful of the future effects of past interest rate increases while remaining on guard against ``persistently higher inflation.''
``We must take account of the possible future effects of previous policy actions -- that is, of policy effects still `in the pipeline,''' he said in the text of testimony to the Senate Banking Committee in Washington. ``The extent and timing of any additional firming that may be needed to address inflation risks will depend on the evolution of the outlook for both inflation and economic growth.''
The hope is that the Feds stay aware of the fact that inflation can keep creeping up even after the economy slows, but that eventually it will level off, so it is wise to not get too aggresive at this stage of the game.
This entry was posted
on Wednesday, July 19, 2006 at 7:35 AM.
