Federal Reserve chairman Ben Bernanke said on Wednesday that there was "little risk" of inflation risks to the US economy in the near future despite the central bank's massive efforts to ease credit.
"Some observers have expressed the concern that, by expanding its balance sheet, the Federal Reserve will ultimately stoke inflation," Bernanke said in a speech to the National Press Club in Washington.
"At this point, with global economic activity weak and commodity prices at low levels, we see little risk of unacceptably high inflation in the near term; indeed, we expect inflation to be quite low for some time," he said.
Bernanke recalled that the Fed had taken extraordinary measures amid the global financial crisis to pump liquidity into the grid-locked financial system in an effort to get credit - the lifeblood of the economy - flowing again.
"Some observers have expressed the concern that, by expanding its balance sheet, the Federal Reserve will ultimately stoke inflation," Bernanke said in a speech to the National Press Club in Washington.
"At this point, with global economic activity weak and commodity prices at low levels, we see little risk of unacceptably high inflation in the near term; indeed, we expect inflation to be quite low for some time," he said.
Bernanke recalled that the Fed had taken extraordinary measures amid the global financial crisis to pump liquidity into the grid-locked financial system in an effort to get credit - the lifeblood of the economy - flowing again.
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