How does it make you feel, as a would-be contrarian, that the Fed Chairman is so totally committed to your stance and telling the world about it?
Bernanke Sees Case for 'Further Action' With Too-Low Inflation
Bernanke and his central bank colleagues are considering ways they can stimulate the economy as the unemployment rate holds near 10 percent and inflation falls short of their goals. After lowering interest rates almost to zero and purchasing $1.7 trillion of securities, policy makers are discussing expanding the Fed’s balance sheet by purchasing Treasuries and strategies for raising inflation expectations, according to the minutes of the Federal Open Market Committee’s Sept. 21 meeting.
“At current rates of inflation, the constraint imposed by the zero lower bound on nominal interest rates is too tight” and the “risk of deflation is higher than desirable,” Bernanke said. “High unemployment is currently forecast to persist for some time.”
A reminder folks: Inflation is not what prices are doing now, it is what will determine general prices as some point in the future.
