In addition, the Committee must continue to resist any tendency for increases in energy and commodity prices to become permanently embedded in core inflation. The best way to prevent increases in energy and commodity prices from leading to persistently higher rates of inflation is by anchoring the publicÂs long-term inflation expectations.Ben Bernanke concludes with the following:
Our economy has reaped ample rewards in recent years from the achievement and maintenance of price stability. Although challenges confront us, as they always do, I am confident that we will be able to preserve those hard-won benefits while promoting sustainable economic growth.At the FOMC June meeting, Mr. Bernanke will raise rates again. I continue to expect a .25% increase.