GOP House Brings Fed Chairman in for Lecture on Inflation

Paul Ryan led the attack on Bernanke's plan to use monetary policy to promote employment growth. He held up an article in the Wall Street Journal to inform Bernanke about the fear of inflation. Bernanke, who does not depend on newspapers for his information, responded by citing recent figures on the slow rate of inflation in the US and he explained that inflation was unlikely in the US given the slow demand for products and very low growth in wages. The Fed is required by law to use its authority to promote price stability and employment stability. Bernanke expressed surprise at the GOP effort to limit the Fed to inflation control.