That stock News

WASHINGTON — President Ben Bernanke Worries are exaggerated that the Fed will help plan the economy could free inflationary expectations, said.

Bernanke's comments are hours after the US Federal Reserve announced Wednesday that it buy government bonds $ 600 billion in an attempt to courageous to make cheaper loans boost spending and reinvigorate the economy.

History: Fed takes step bold, risked to strengthen the economy

Critical, including the US Federal Reserve officials fear that the money is injected into the economy could ignite inflation or bubbles bond prices or to produits.Bernanke said these fears of inflation are "overstated."A larger program of 1.7 billion dollars to the financial crisis did not lead to higher inflation, there souligné.lorsque economy is on firm footing, Bernanke has expressed confidence that the Fed can easily absorb all this money without detriment to the economy.

Bernanke revealed his thoughts in an opinion article published Thursday in the Washington Post.

The Fed needs measures because unemployment is too high and that inflation is too low, signs of a still-troubled economy, Bernanke said.

Update there are 37 minutes 11/4/2010 12: 03: 30 PM + 00: 00 engine decays after A380 jet takes off from mass grave found near elections Mexican resort, 2012 presidential campaign begins finished your bad breath election lessons

"We could hardly be satisfied," said the Director of the reserve.

The unemployment rate stood at 9.6%.It was at least 9.5 percent for 14 months, the longest segment since the great depression.

The "soft" in the economy - factories running below capacity and restrict hiring companies - has kept inflation historically low.

In the 12 months ending in September, prices for consumption increased by only 1.1%.Bernanke said the Fed would like to see more nearly 2% inflation to show that the economy is a strong recovery.

Wednesday Fed action also aims to stifle any deflationary force in the bud.

"In the extreme cases, very low inflation can turn into deflation (decrease of prices and wages), contributing to long periods of economic stagnation," Bernanke said.

History: New Congress faces difficult economic choices

Deflation is a generalized prices, wages and the values of homes and the stocks.Elle can cause people to postpone purchases because they feel that they can later purchase priced inférieurs.Baisse income also makes it more difficult to pay faillite.Une times consider saisies.Faire dettes.Augmentent, deflation is difficult for policymakers to rompre.Déflation contributed to "The Japan lost decade" of the 1990s, and the country is still against it.

"With high unemployment and low inflation, economic support is necessary," Bernanke said.

Copyright 2010 the Associated rights Press.Tous réservés.Ce hardware cannot be published, broadcast, rewritten or redistributed.

View the original article here