Don't miss

Replay


LATEST SHOWS

BUSINESS DAILY

DAVOS 2017: Urban-rural divide defies populist wave

Read more

BUSINESS DAILY

DAVOS 2017: Will Trump turn to 'energy diplomacy'?

Read more

IN THE PAPERS

'On Inauguration Day, respect for the office and hope for the nation'

Read more

IN THE PAPERS

French papers before Trump's inauguration: 'Here we go!'

Read more

THE DEBATE

Davos Debate: Getting a fair share from multinationals

Read more

THE DEBATE

Davos Debate: Getting a fair share from multinationals (part 2)

Read more

EYE ON AFRICA

Adama Barrow sworn in as president, ECOWAS forces enter Gambia

Read more

BUSINESS DAILY

DAVOS 2017: Trump 'could hit the ball out of the park'

Read more

BUSINESS DAILY

DAVOS 2017: May's Brexit plan 'not realistic'

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)