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Bernanke: Ready To 'Respond' If Needed, But Infl Likely 'Transitory'
Federal Reserve Chairman Ben Bernanke said Monday evening that the Fed will "respond" if inflation pressures persist, but made clear that is not his expectation. If anything, Bernanke said that underlying inflation may ultimately prove to be too low relative to historical norms. And he pointed to continued problems in the housing market, which he said are retarding economic growth. A few Federal Reserve officials have suggested lately that the nation's central bank will need to raise interest rates later this year to curb inflation, but that was hardly the message Bernanke was sending as he took questions following ... (full story)