Federal Reserve comments on inflation

Federal Reserve Chairman Ben Bernanke said on 22 Aug 2008, "Slow economic growth will likely keep inflation at bay into 2009, but markets likely have not yet experienced the full fallout from the "financial storm" that began roughly a year ago."

Bernanke also noted that the inflation outlook is "highly uncertain." If commodity prices continue to soften, it would be good news for inflation, which has reached the highest level in decades for consumers and producers alike. However, Bernanke noted that part of the reason oil and other commodities have become cheaper is that the market believes that economic growth is "likely to fall short of potential for a time."

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