Federal Reserve Chairman Ben S.
Bernanke signaled he’s done cutting interest rates for now and
raised his biggest concerns yet about the inflationary effects of
the dollar’s 16 percent drop in the past year against the euro.
The Fed is working with the Treasury to “carefully monitor
developments in foreign exchange markets” and is aware of the
effect of the dollar’s decline on inflation and price
expectations, Bernanke said today in his first speech on the
economic outlook in two months. In addition, interest rates are
“well positioned” to promote growth and stable prices, he said.
Bernanke Says Rate `Well Positioned,’ Watching Dollar
Bloomberg, June 3 2008