Fed's Bernanke Toughens Up

Federal Reserve Chairman Ben Bernanke said Monday that core inflation in the U.S. economy is at or above an acceptable ceiling, even as signs of an economic slowdown multiply.

In remarks at a Washington monetary conference, Bernanke noted that core inflation as measured by the consumer price index was 3.2% over the last three months and 2.8% over the last six months. As measured by the price index of the personal consumption expenditures report, core inflation is up 3% over three months and 2.3% over six, he said.

"These are unwelcome developments," Bernanke said. ...