Federal Reserve Chairman Ben S. Bernanke was determined to assure lawmakers that the Fed can provide record stimulus and also limit inflation. He claimed that the Fed wouldn’t accept rising consumer prices in order to foster economic growth.
“It will be a similar pattern to what we’ve seen in previous episodes where the Fed cut rates, provided support for the recovery, and when the recovery reached a point of takeoff where it could support itself on its own, then the Fed pulled back, took away the punch bowl,” Bernanke told the House Financial Services Committee today in Washington.