STONE MOUNTAIN, Ga. — Federal Reserve chairman Ben Bernanke said Monday evening that the Fed will respond if inflation pressures persist, but he made it clear that is not his expectation.
If anything, underlying inflation may ultimately prove to be too low relative to historical norms. Bernanke said.
He pointed to continued problems in the housing market that he said are retarding economic growth.
In contrast, a few Fed officials have suggested recently that the central bank will need to raise interest rates later this year to curb inflation.
