I'd hate to say "I told you so", but it's nearly two months since I posted a warning on the FM blog warning of the
coming dangers of stagflation - and now Ben Bernanke is making
the same warning declaration:
Quote:
In remarks that sent shivers through Wall Street, Mr Bernanke said the US faced double pressure from a deep housing downturn and "somewhat elevated" levels of core inflation.
The Dow Jones index fell 106 points in early trading in New York as investors fretted over the growing signs of "stagflation", which is typically poisonous for equities.
Mr Bernanke said there was a "big risk" that high capacity usage would prevent inflation falling back down to the Federal Reserve's comfort level.
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Stagflation?
