Yellen Says Commodity-Price Rise Doesn’t Warrant Fed Shift |
| BusinessWeek - Apr 11, 2011 |
Federal Reserve Vice Chairman Janet Yellen said the increase in food and fuel costs will have only a temporary impact on inflation and consumer spending and warrants no reversal of record monetary stimulus.
“The surge in commodity prices over the past year appears to be largely attributable to a combination of rising global demand and disruptions in global supply,” Yellen said today in a speech in New York. “These developments seem unlikely to have persistent effects on consumer inflation or to derail the economic recovery and hence do not, in my view, warrant any substantial shift in the stance of monetary policy.”
Yellen is the second top lieutenant of Chairman Ben S. Bernanke to suggest this month that the Fed will complete its $600 billion of bond purchases aimed at boosting growth. William C. Dudley, president of the Federal Reserve Bank of New York, said April 1 that the recovery is “still tenuous,” while Bernanke said April 4 that higher commodity prices may have a “transitory” effect on inflation.
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- Posted: 2011-04-11 12:04:14
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