Expectations not perfectly anchored, says Bernanke

Ben Bernanke, the chairman of the Federal Reserve, says inflation expectations in the United States remain "imperfectly anchored", even if they seem much better anchored now than they were a few decades ago.

"Undoubtedly, the state of inflation expectations greatly influences actual inflation and thus the central bank's ability to achieve price stability," Bernanke said in a speech on 10 July at the conference of the National Bureau of Economic Research.

Bernanke also suggested that the rational

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