Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

Dotard: an educational insult

Read more

#TECH 24

Medtech: Repairing the human body

Read more

ENCORE!

Jennifer Lawrence on why she's unafraid to speak out

Read more

#THE 51%

Hola "Ellas Hoy" - The 51 Percent welcomes its sister show on FRANCE 24 Spanish

Read more

YOU ARE HERE

A stroll through the Corsican city of Calvi, jewel of the Mediterranean

Read more

REPORTERS

The torment of Christians living in Syria’s Khabur valley

Read more

FOCUS

'Generation Merkel' yearns for continuity and stability

Read more

DOWN TO EARTH

Amazon rainforest pays heavy price for Brazil's political crisis

Read more

EYE ON AFRICA

Presidential election re-run pushed back to October 26th

Read more

Business

Fed says risk of deflation "receding"

Latest update : 2009-05-12

Federal Reserve Chairman Ben Bernanke said on Monday that the risk of deflation was "receding" and that the dollar would remain strong even though the economic situation was difficult.

AFP - Federal Reserve Chairman Ben Bernanke on Monday said the risk of deflation was "receding," and expressed confidence the dollar would remain strong in the midst of the economic downturn.
  
"We have to be very aggressive... to avoid any risk of deflation, which I now believe is receding," said Bernanke.
  
The Fed chair admitted that the economic situation was very difficult and tough decisions would come in trying to retain price stability, particularly deciding when to tighten monetary policy.
  
With the US government pumping billions of dollars into the economy there are fears in some quarters that inflation, rather than deflation, would be a threat to the economy.
  
But he sounded an upbeat note on the role of the US currency, which some see as weakening over time against emerging currencies.
  
"The dollar will be strong because the US economy is strong," he said.
  
"For the foreseeable future, I am certain that the dollar will remain the leading currency both for reserves and for transactions".

Date created : 2009-05-12

COMMENT(S)