Ben Bernanke: Economic Risks Remain. President Bush: Don’t Panic.

Today, Federal Reserve Chairman Ben Bernanke went before Congress and testified that economic risks remain. Indeed, departing from his usual, “the economy is on the road to recovery” line, Bernanke made it clear that he is uncertain about a great deal in the economy. He also pointed out that inflation is a very real concern. Extra concerning, in fact, since there hasn’t been complementary economic growth to blunt the effects.
I think he forgot to mention, though, that the orgy of interest rate cuts the Fed made to build “confidence” in the stock market played a very large role in the …read more