Bernanke Says Inflation Should Moderate Soon

Jackson Hole, WY, Aug. 22, 2008--Federal Reserve Chairman Ben Bernanke said inflation was on track to moderate in coming months.

Recent developments in commodity prices and the dollar, combined with slow growth, should lead inflation pressures to ease, Bernanke told policymakers and leading economists attending the Fed's annual retreat in Jackson Hole.
 
The recent decline in commodity prices and the increased stability of the dollar have been welcome trends, Bernanke said.

"If not reversed, these developments, together with a pace of growth that is likely to fall short of potential for a time, should lead inflation to moderate later this year and next year," Bernanke said.

The Fed chairman stressed that the central bank was committed to price stability over the medium term and that the Fed will have to monitor inflation carefully as the outlook remains uncertain.