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Bernanke Says Costly Oil No Threat To U.S. Economy

Tuesday, March 1, 2011 - 5:37 PM
Don't expect the higher gas prices to have much influence on the Fed's monetary policy. Reuters reported on Bernanke's testimony at the Senate Banking Committee:
"The most likely outcome is that the recent rise in commodity prices will lead to, at most, a temporary and relatively modest increase in consumer price inflation," Bernanke said.

However, he warned that if expectations of future inflation were to build, the Fed may need to act.

It would probably take a lot of building of inflation expectations for the Fed to act. It seems they're paying more attention to the unemployment rate.
2
Ken TuminKen Tumin5,469 posts since
Nov 29, 2009
Rep Points: 125,077
1. Tuesday, March 1, 2011 - 8:24 PM
What does he care? Bernanke doesn't have to buy gasoline.
1
ShorebreakShorebreak2,622 posts since
Apr 6, 2010
Rep Points: 14,212
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