Beverly Hills 11/18/2009 1:13:42 AM
News / Business

Federal Reserve Reports Low Inflation

Finance World News Update by EQUITIES Magazine

In his speech yesterday, Ben Bernanke voiced his support for the continued low interest rate saying that the central bank expects to keep its fed-funds target rate close to zero for an “extended period” in the face of high unemployment and low inflation. He added that core inflation, inflation expectations and unemployment will guide the central bank’s decisions on interest rates.

 

"On net, notwithstanding significant cross-currents, inflation seems likely to remain subdued for some time," said Mr. Bernanke.

 

Although some economists argue that the combination of the weaker dollar and rising energy prices are warning signs of skyrocketing inflation, Bernanke stressed that slack in the economy and low labor costs will keep inflation in check.

 

 

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