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Bernanke Says Fed Too Slow on Inflation and Faces Stagflation

  • Former Fed chair: ‘In retrospect, yes, it was a mistake’
  • Economy likely to slow and inflation stay elevated, he says

Former Federal Reserve Chairman Ben Bernanke said the current Fed leaders were too slow to react to surging U.S. inflation and as a result face a period of stagflation, or a combination of stagnant growth and high inflation.

“The forward guidance, I think overall, on the margin, slowed the response of the Fed to the inflation problem,” Bernanke said in an interview broadcast on CNBC on Monday. “I think, in retrospect, yes, it was a mistake and I think they agree it was a mistake.”