Who's right ? Our resident "experts" , our very own resident loon.. you know
who you are or the chairman ?
Bernanke says economy healing; inflation risks up
3 hours ago
WASHINGTON (AFP) â€” Federal Reserve chairman Ben Bernanke has said the likelihood of a severe US economic slump has diminished, while "upside risks" to inflation are forcing the Fed to be more vigilant.
The comments appeared to reinforce indications from Bernanke and other Fed members that the central bank is unlikely to cut interest rates further even in the face of weak economic conditions.
Bernanke, speaking at a forum sponsored by the Boston Fed, suggested the economy appears to be on the mend even if conditions are fragile, as evidenced by the jump in unemployment to 5.5 percent reported last week.
"Despite the unwelcome rise in the unemployment rate that was reported last week, the risk that the economy has entered a substantial downturn appears to have diminished over the past month or so," said Bernanke.
"Over the remainder of 2008, the effects of monetary and fiscal stimulus, a gradual ebbing of the drag from residential construction, further progress in the repair of financial and credit markets, and still-solid demand from abroad should provide some offset to the headwinds that still face the economy."
Bernanke was referring to the government's 168-billion-dollar stimulus package centered on tax rebates to boost consumer spending, and the Fed's aggressive actions to cut the federal funds rate to 2.0 percent from 5.25 percent last September.
AFP: Bernanke says economy healing; inflation risks up