Federal Reserve Chairman Ben Bernanke’s testimony last week before Congress, scolding the market for believing the central bank had dropped its inflation bias, highlighted the tightrope on which the Fed chief is tiptoeing. With each communication comes the delicate balancing act of not seeming to underestimate the potential economic risks of the current housing market plunge, while also making skeptical investors think the Fed is tough on inflation. Call it the Bernanke Bind. Read more here.
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