Fed's Bernanke sees no U.S. inflation risks: Nowotny

WASHINGTON Sat Apr 20, 2013 6:29pm EDT

U.S. Federal Reserve Chairman Ben Bernanke attends the International Monetary and Financial Committee (IMFC) meeting during the Spring Meeting of the IMF and World Bank in Washington, April 20, 2013. REUTERS/Yuri Gripas

U.S. Federal Reserve Chairman Ben Bernanke attends the International Monetary and Financial Committee (IMFC) meeting during the Spring Meeting of the IMF and World Bank in Washington, April 20, 2013.

Credit: Reuters/Yuri Gripas

WASHINGTON (Reuters) - Federal Reserve Chairman Ben Bernanke told global policymakers he sees no risk to inflation in the United States, European Central Bank Governing Council member Ewald Nowotny said on Saturday.

Summing up presentations to an International Monetary Fund meeting, Nowotny told reporters Bernanke had given a "very optimistic" portrayal of the U.S. outlook.

"They see absolutely no danger of an expansion in inflation," Nowotny said. Bernanke had said U.S. inflation should be 1.3 percent this year.

Fed forecasts put inflation by the end of this year in a range of 1.3 to 1.7 percent. In the 12 months through February, inflation was 1.3 percent.

(Reporting by Krista Hughes; Editing by Andrea Ricci)

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (6)
beech wrote:
And pigs can fly.

Apr 21, 2013 1:10am EDT  --  Report as abuse
SteveFink wrote:
And Bernanke did not see a housing bubble either. And when the bubble popped, he did not see it affecting the broader economy. In fact, he supported the opposite notions.

YouTube: “Ben Bernanke was wrong”. = five minutes of Bernanke not seeing the obvious and suggesting the opposite. Maybe this time he is right though?

Apr 21, 2013 2:45am EDT  --  Report as abuse
ttolstoy wrote:
It is quite easy to say there is “no inflation” so long as you define inflation in whatever manner suits you.

For example, the US government is going broke on social security. It is an unsustainable program, fueled by promises bigger than the American people, with a very low birthrate, can keep. The government wants to deal with the problem by switching “cost of living” increases to the “chained CPI”. Chained CPI is a fraudulent measure of inflation that automatically lowers the increases for recipients.

In other words, instead of simply telling people the truth, the politicians and their enablers at the international banking cartel, continue to tell lie after lie after lie…

Perhaps, one of the biggest lies of all is the current “official” version of the CPI. It is not quite as fraudulent as the alternative “chained CPI” but it is also fraudulent. Instead of using a fixed basket of goods, and simply tracking the prices, the government already uses tricks like “hedonic” value to reduce the price of things that have been inflated. The claim is based on a completely subjective decision, by government paid statisticians, that the “quality” of the price-reduced goods has increased, and therefore they cost less than the year before. Similarly, they use so-called “product substitution” to claim that, if Americans are eating more hamburger this year than sirloin steak, because both have gone up so much in price, the cheaper price of hamburger is substituted into the basket of goods to determine how much things have gone up in price.

A more honest method of calculating inflation was used in the official US CPI numbers, prior to 1982. By plugging the base data collected by BLS into the older formula, the result is that inflation is running at over 9% per year so far, and is rising. We are inside an inflationary depression. Bernanke’s policies are a dismal failure, except for the international casino bankers, who are making a mint, at everyone else’s expense.

Apr 21, 2013 3:48am EDT  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

Recommended Newsletters

Reuters U.S. Top News
A quick-fix on the day's news published with Reuters videos and award-winning news photography and delivered at your choice of one of four times during the day.
Reuters Deals Today
The latest Reuters articles on M&A, IPOs, private equity, hedge funds and regulatory updates delivered to your inbox each day.
Reuters Technology Report
Your daily briefing on the latest tech developments from around the world from Reuters expert tech correspondents.