Bernanke: Energy Prices Could Speed Inflation

Federal Reserve Chairman Ben Bernanke told Congress during testimony this morning that the economy is performing well and should continue on that track in the coming months, but rising energy prices and the resulting fear of inflation might force the Fed to continue raising interest rates.

“Rising energy prices pose risks to both economic activity and inflation,” Bernanke said. “If energy prices stabilize this year, even at a high level, their adverse effects on both growth and inflation should diminish somewhat over time.”

ABC