Federal Reserve Chairman Ben S. Bernanke expressed more concern about rising inflation than the cooling U.S. economy yesterday, sending his strongest signal yet that interest rates are probably headed higher. Stocks plunged after Bernanke vowed to combat the recent 'unwelcome' pickup in inflation, even as he told an international bankers' conference that an economic slowdown 'seems now to be underway.' (Washington Post, Tuesday)
Mr. Bernanke will find the cause close to home.
FEE Timely Classic
Interest Rates and the Federal Reserve by Richard M. Ebeling