Fed Chairman Bernanke's remarks at the Jackson Hole summit this morning have eased Wall Street concerns about a possible resurgent inflation. The Dollar has recovered some of yesterday's losses, and renewed commodity price strength has also eased.We must remember that this same Fed is the one that told us that there was no credit crisis, that inflation was contained, and that there would be no contagion from the credit markets into the rest of the economy. This is also the same Fed that didn't see any of this coming last year! That's pretty cruddy credibility! Today's remarks sound more like spin than credible economics!
