Inflation, Interest Rates Expected To Stay Low Into 2010

The Federal Reserve is playing a dangerous game. The dollar is record lows. Gold is at record highs. Oil is at $80 a barrel. The economy is underperforming and inflation remains low.

The Washington Post reports on this delicate dance by the highly regarded Ben Bernanke:

Chicago Federal Reserve President Charles Evans said on Friday that U.S. monetary policy was likely to remain accommodative well into next year, but that the tools for shifting gear were being explored.

With inflation “underrunning” and the economy underperforming, interest rates would remain low for an extended period of time as the U.S. Federal Reserve monitored developments, Evans told reporters.

But U.S. policy-makers were already exploring ways to eventually shift to more restrictive policy when the time was right, he said, adding that members of the U.S. central bank’s Federal Open Market Committee still had different perspectives.

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (, he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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