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Bernanke Doesn’t See Return of ’70s Woes
Mar 2nd, 2008 by admin
From Yahoo! Finance:
By Jeannine Aversa, AP Economics Writer
Bernanke Dismisses Worries About US Economy Returning to ’70s-Style ‘Stagflation’
WASHINGTON (AP) — Federal Reserve Chairman Ben Bernanke told Congress Thursday that the nation isn’t “anywhere near” the dangerous stagflation situation of the 1970s.
With the economy slowing and inflation rising, fears have grown that the country could be headed for the dreaded twin evils of stagnant growth and rising prices known as “stagflation.”
“I don’t anticipate stagflation,” Bernanke told the Senate Banking Committee. “I don’t think we’re anywhere near the situation that prevailed in the 1970s.”
“I do expect inflation to come down,” he added. “If it doesn’t, we will have to react to it.”
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