The Federal Reserve has a dual mandate: "keep the economy's growth as high as possible and contain inflation." This country has had an amazing run in containing inflation over the last 30 years, but the fear of inflation that raged from 1966-1980 still haunts economists and the hold-over Greenspan Fed District Presidents of today. But the current good news on prices and on the economy, almost guarantees that the Fed will be pulling out all the stops (again) to keep the economy moving forward.
The latest GDP report disappointed many people, even though it only came in 0.1% less than expected. And since the Q1 number was revised up dramatically, it really was a positive report. However, the problem that haunts us the most right now is employment, which will be updated with Friday's report.
Overall, my point is that Bernanke has the power, good sense and resources to keep the economy growing. Those perennial "double-dippers" will once again be proven wrong.
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