"We will continue to monitor these developments closely and are prepared to respond as necessary to best support the ongoing recovery in a context of price stability."
Ben, what price stability? Oil is trading near $100 per barrel. Gasoline at the pump is nearing $4.00 per gallon. Wheat prices are near an all time high. Gold is at an all time high. Silver is at a 31 year high. Cocoa is at an all time high. And on and on.
Commodities traded in the spot market are also at all time highs. Iron ore is a good example.
The problem is that with worldwide demand exploding, this trend for higher commodity prices shows no sign of abating. Mr. Bernanke, the horse is already out of the barn.
What does the Fed plan to do? Apparently just print more money and give it to the banks so they can speculate as much as they want. JP Morgan Chase & Co. (JPM) just set up a fund to buy into Twitter, Zynga, and Skype. Goldman Sachs (GS) wants in on Facebook. Earlier this year JP Morgan bought $1 billion of copper.
Governments are stockpiling food and precious metals. Food riots are taking place in India and Africa.
Bernanke insists that he wants to create jobs. Just printing $600 billion and giving it to the banks won't do the trick. The Fed must have accountability. Where is this $600 billion going? Is it going to create jobs? How do we know that?
At some point Congress must make the Fed account for every penny it creates. It must be forced to go to the banks and demand accountability for the $600 billion and where it went.