By Klaus Marre
Posted: 08/22/08
The Hill - Leading the News
Federal Reserve Chairman Ben Bernanke on Friday said the country’s financial crisis is not yet over, noting that its effects on the broader economy are increasingly showing.
“Although we have seen improved functioning in some markets, the financial storm that reached gale force [about a year ago] has not yet subsided, and its effects on the broader economy are becoming apparent in the form of softening economic activity and rising unemployment,” Bernanke said at an economic symposium in Wyoming.
“Add to this mix a jump in inflation, in part the product of a global commodity boom, and the result has been one of the most challenging economic and policy environments in memory,” the Fed chairman stated.
However, Bernanke expressed optimism that inflation would moderate toward the end of the year and in 2009.
“Nevertheless, the inflation outlook remains highly uncertain, not least because of the difficulty of predicting the future course of commodity prices, and we will continue to monitor inflation and inflation expectations closely,” he stated.
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