WASHINGTON (Reuters) - Federal Reserve Chairman Ben Bernanke said on Thursday he did not think the U.S. economy was heading toward stagflation, the conundrum of experiencing inflation and growth stagnation seen in the United States 30 years ago.
“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 will come down.”
Bernanke also told the committee that various indicators showed inflation expectations are remaining pretty stable and he was quite confident the country will have strong economic growth in the next few years.
Reporting by Lisa Lambert, Editing by Chizu Nomiyama