Bernanke sets out tightening strategy
Accommodative monetary policy is still the order of the day, but with an eye to the eventual exit, Ben Bernanke, the Federal Reserve chairman, outlined several ways in which monetary policy can be tightened.
Bernanke said that as the recovery gathers speed, banks may begin to lend more aggressively out of their reserves which could produce fast growth in broad money, and apply inflationary pressure.
He highlighted two ways in which policy could be tightened: the Fed could either pay interest on
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