Fed has 'Exit Strategy' ; Bernanke Cites Option to Raise Interest Rates

Summary

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Federal Reserve Chairman Ben S. Bernanke assured the Senate banking committee Wednesday that the Fed has developed an "exit strategy" that would enable the central bank to raise short-term interest rates to fight inflation when it eventually becomes necessary.

Mr. Bernanke was confident the Fed will achieve this goal despite the fact that it has injected extraordinary amounts of liquidity throughout the banking system in fighting the worst financial crisis since the Great Depression.

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Fed has 'Exit Strategy' ; Bernanke Cites Option to Raise Interest Rates

Some members of Congress, economic analysts and policymakers worry that the trillions of dollars in liquidity that the Fed has created t...

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