Tuesday, July 21, 2009
Federal Reserve Chairman Ben Bernanke says the Fed will be able to reel in its extraordinary economic stimulus and prevent a flare up of inflation when the recovery is more firmly rooted.
In testimony prepared for the House Financial Services Committee, Bernanke also says any such steps will be far off in the future and that the central bank's focus remains "fostering economic recovery."
To that end, Bernanke again pledged to keep its key bank lending rate at a record low near zero for an "extended period." Economists predict rates will stay at record lows through the rest of this year.