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Message: how the fed seeks to control commodity prices

how the fed seeks to control commodity prices

posted on Sep 17, 2008 10:05AM

the is from a chicago tribune article entitled, "bernanke: 'we have lost control.'"



Bernanke could hypothetically limit inflation in commodities by raising interest rates, a policy that would restrict the flow of money but potentially lead to an avalanche of bank failures. At a financial conference in Florida on Tuesday, Hale, a Chicago-based economist for investment managers, hedge funds and multinational companies, paraphrased the Fed chairman's response.

"We have lost control," said Hale, quoting Bernanke. "We cannot stabilize the dollar. We cannot control commodity prices."

http://www.chicagotribune.com/busine...

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