Federal Reserve Chairman Ben Bernanke today expressed concern over the inflationary risk resulting from pressures on the U.S. dollar and said U.S. monetary policy will ensure it remains a strong currency.
“We are attentive to the implications of changes in the value of the dollar for inflation and inflation expectations,” the Fed chief said in prepared remarks at the International Monetary Conference in Barcelona, Spain. “The Federal Reserve’s commitment to both price stability and maximum sustainable employment and the underlying strengths of the U.S. economy … will be key factors ensuring that the dollar remains a strong and stable currency.”
Mr. Bernanke’s remarks may signal U.S. short-term interest rates have reached a bottom, analysts said. “The Fed is registering more concern on inflation and making a rare mention of the dollar as well as waving its hands somewhat wildly about bubbles,” said Robert Brusca, chief economist at FAO Economics.
