Bernanke is confident about growth and inflation

Things become better but we have a long way to make. This is a message from the President of the Federal Reserve Ben Bernanke, who is trying to assure Americans that the prospects for the world’s largest economy appears to be improving.

Bernanke, in its annual report on monetary policy to the Financial Services Committee of the Lower House of Congress announced that the interest rate will remain close to zero for some time, but he and his advisers are already thinking about the exit strategy:
„We also believe it is important to convince the public and the markets that the extraordinary policy measures that were taken in response to financial crisis and recession can be reversed in a smooth and timely manner, if necessary, thus avoid the risk that the incentive policy could lead to future increases in inflation. “
President of the U.S. central bank thus address the concerns of some economists and politicians that, in essence, more dollars were printed to promote the economy and inflation could rise when the refund gather speed.
Bernanke warned that the housing market and the labor market is still not recovered and unemployment will likely remain high through 2011, which could undermine the fragile confidence of consumers, and gradual recovery.

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Euronews
Finance