Dollar/Politicians Talk is cheap and ineffective

Why is Ben Bernanke suddenly worried about inflation? After months downplaying price risks, the chairman of the Federal Reserve Board said on Tuesday that inflation was still «uncomfortably high». It’s easy to explain this hint that US interest rates could yet rise again. Bernanke is afraid of a dollar rout. Hank Paulson, the US treasury secretary was thinking the same way when he made soothing comments about the steady US growth rate. Thierry Breton, the French finance minister, was more fretf...