Bernanke Admits: Inflation Rising
While he did announce the Federal Reserve will end its second round of quantitative easing on schedule, Fed Chairman Ben Bernanke admitted that inflation will rise, which was the fear of those who criticized the program in the first place.
In his first regular news conference, Federal Reserve Chairman Ben Bernanke said the central bank was continuing its stimulus policy because it was projecting slower growth in the economy with only a modest uptick in inflation.
Wednesday’s event marks the first regularly scheduled news conference by a Fed chairman in the central bank’s 97-year history.
The Fed cut its growth estimate for 2011 to between 3.1 percent and 3.3 percent from a January forecast of 3.4 percent to 3.9 percent.
The Fed also raised its estimate of inflation this year to a range of 2.1 percent to 2.8 percent, taking into account a recent surge in oil prices. However, it bumped its core inflation forecasts only marginally to a 1.3 percent to 1.6 percent range.
That’s a much different picture than the Associated Press decided to paint:
The Fed downplayed inflation risks. It acknowledged a spike in oil prices, but concluded that the pickup in inflation will be temporary.
Fed Chairman Ben Bernanke spoke at a historic news conference after the meeting. It was the first time in the Fed’s 98-year history that a chairman has begun holding regular sessions with reporters.
Bernanke said Fed officials expect the moderate economic recovery to continue after weak growth in the first three months of the year.
- John McCain Lectures Tea Party Senator on How ‘Business’ Gets Done in Congress: ‘That’s What We’ve Been Doing for a Couple Hundred Years’ 601 Comments
- Boy Scouts of America Vote to Allow Gay Members 525 Comments
- Obama Doesn’t Return Marine’s Salute, Shakes Hand Instead — Is This a Protocol Misstep? 413 Comments
- Game-Changing Bombshell? There’s a Major Twist in the Story About a High School Student’s Lesbian Relationship With a Minor 347 Comments
- Church vs. State Complaint Leads City to Remove Christian Crosses on Water Tower — Now See What They’ve Been Replaced With 300 Comments
- Is the Boy Scouts’ Gay Amendment the ‘Beginning of the End’ for the Group? (Plus: Tell Us Where You Stand) 297 Comments
- MSNBC Hosts Martin Bashir and Chris Hayes Claim London Machete Killers Aren’t Terrorists: ‘These Are Just Murderers’ 154 Comments
- Did You Catch the Possibly Policy-Changing Ft. Hood Reference in Obama’s Terror Speech? 101 Comments
- Dem. Rep. Apologizes for Attending ‘Racist, Anti-Semitic and Homophobic’ Speech Read More
- Have You Had Scotch at a NJ TGI Friday’s Lately? You Might Have Been Drinking Rubbing Alcohol Read More
- Venezuelan President Blames Toilet Paper Shortage on the Rich Read More
- This Terrible Chart Shows the Change in Food Stamp Participation Over the Last 10 Years Read More
- Disney Makes Absolutely Mortifying Photoshop Mistake Read More
- Trey Gowdy at It Again — This Time with a Jack Bauer Reference! 117 Comments
- LOOK: Woman Claims to Have Photographed UFO in California Read More
- Lion Named ‘Bonedigger’ and Small Dog Make Most Unlikely Companions Read More
- Rocket Bike Sets Land Speed Record — and Uses a Fuel You Wouldn’t Expect Read More
- How 3D Printing Technology Created a Special Part for Baby’s Windpipe and Saved His Life Read More
- 6 Fascinating Spy Gadgets You’ll Probably Want (and Can Have) After Seeing Read More
- 16 children, 1 teacher die in Pakistan bus fire
- Indy 500 could be better than 2012's epic race
- Williams sisters entered in doubles at French Open
- Rescuers look for pilot in deadly NY Angel Flight
- LA stoplights synchronized but road war endures
- Kuchar finishes Colonial 2nd round still up 1
- Tornado upon them, quick choices decided fate
- Hagel: Cadets must stamp out sex assault scourge