Recession Over? Somebody Tell the Fed

FRB Chair Ben Bernanke

The Federal Reserve moved closer to a second wave of unconventional monetary easing and said for the first time that too-low inflation, in addition to sluggish growth, would warrant taking action. The Federal Open Market Committee’s statement yesterday that inflation is “somewhat below” levels consistent with its congressional mandate for stable prices pushed yields on two- year Treasuries to a record low. The language evoked FOMC warnings in 2003 of the risk of inflation “becoming undesirably low” that justified the era’s low-rate policy. Read more here:

Recession Over? Somebody Tell the Fed