Zimbabwe Ben Is In Denial
Want a good laugh? Check out Ben Bernanke's testimony before the Committee on Banking, Housing, and Urban Affairs today:
The rate of pass-through from commodity price increases to broad indexes of U.S. consumer prices has been quite low in recent decades, partly reflecting the relatively small weight of materials inputs in total production costs as well as the stability of longer-term inflation expectations. Currently, the cost pressures from higher commodity prices are also being offset by the stability in unit labor costs. Thus, the most likely outcome is that the recent rise in commodity prices will lead to, at most, a temporary and relatively modest increase in U.S. consumer price inflation--an outlook consistent with the projections of both FOMC participants and most private forecasters. That said, sustained rises in the prices of oil or other commodities would represent a threat both to economic growth and to overall price stability, particularly if they were to cause inflation expectations to become less well anchored. We will continue to monitor these developments closely and are prepared to respond as necessary to best support the ongoing recovery in a context of price stability.
It's oil's problem! Not a single acknowledgment of the fact that he has basically been shooting dollars out of his ass for the last two and a half years.
He says "that said, sustained rises in the prices of oil or other commodities would represent a threat both to economic growth and to overall price stability, particularly if they were to cause inflation expectations to become less well anchored" almost as if that wasn't what they expected to happen when they injected bazillions, nah, megabazillions into the economy! What!? Aren't these people supposed to be professionals?
Any moron could have seen that coming. This one did. Two years ago.