Bernanke sees energy effects fading

Fed chairman Ben Bernanke said in a letter published on Monday17 April that the increase in energy prices since late 2003 will not have a lasting impact on U.S. inflation as long as the Federal Reserve conducts policy appropriately.

"In the longer run, these inflation effects should fade even if energy prices remain elevated, so long as monetary policy keeps inflation expectations well-anchored by responding appropriately to future price and output developments," Bernanke said in an April 5 l