Ben Bernanke, the former chairman of the Federal Reserve (US Central Bank), said that a widely expected interest increase next week could be the last, as part of efforts to tighten US fiscal policy.
Bernanke said during a webinar organized by Fidelity Investment that “it seems clear that the Federal Reserve will raise interest by 25 basis points at its next meeting, and this increase in July is likely the last.”
Bernanke, who is currently senior adviser to Investment Management Co., said he believes inflation will decline “more sustainably” over the next six months by 3% to 3.5%, with car prices falling and rent increases falling according to Bloomberg News Agency.
“Inflation will fall to 3% or more by early next year, and I think the Fed will take some time to try to lower inflation to the target of 2%,” he said.
The former Fed chairman said the United States would likely see an economic slowdown as the price of attempts to cut inflation, although he stressed that any economic recession would be limited, mostly
