Bernanke: Fed Cautious On Stimulus

By Jeannine Aversa -

Federal Reserve Chairman Ben S. Bernanke said inflation now is “higher” and “closer” to the central bank’s informal target than was the case in August.

Bernanke in comments today at a Senate Banking Committee hearing said the increase in inflation this year is one reason why the Fed won’t immediately embark on a third round of bond- buying.

“We’re not prepared at this point to take further action,” he said.