Bernanke: Fed well-prepared for stimulus fallout
WASHINGTON (AFP) - Outgoing Federal Reserve Chairman Ben Bernanke said Thursday that the US central bank is well-prepared to handle any risks from its stimulus, such as higher inflation and asset bubbles.
Speaking two weeks before he ends his tenure leading the Fed - which included facing the deepest economic crisis since the 1930s - Bernanke again dismissed fears of a well of inflationary pressure building up from five years of easy money policies.
He also said the Fed did not believe that stocks and property prices were overblown despite last year's huge rises in both markets.
"We developed all of the tools that we need to manage interest rates, to tighten monetary policy, even if the balance sheet stays where it is or gets bigger," he said at a Brooking Institution discussion of central banking.