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Bernanke Is Vexed By Strangest Labor Market Ever, Downplays Inflation
https://www.fa-mag.com/news/bernanke-is-vexed-by-strangest-l...

Former Federal Reserve Chairman Ben Bernanke thinks inflation will diminish in 2022 and that unemployment will approach full employment over the next 12 months.

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The supply-chain problem involves both supply and demand, Bernanke said. Over the last few decades, America’s inventory management structure was “built around a fragile just-in-time” system. The weaknesses of this system have been exposed during 2022. “It can be broken up very quickly” if people start hoarding, he said.

But there is another dimension to what we’ve experienced since March 2020. Carney [former governor of the Bank of England] noted that much of the economy has adapted very well to the pandemic. In fact, total output now exceeds pre-pandemic levels, despite all the supply-chain and labor markets problems.

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I always remember what Bernanke said about inflation when certain public figures were fretting about "hyperinflation" due to the recovery stimulus after the financial crisis.

Bernanke said something like, "the Fed has a lot of tools to deal with inflation."

In short, if inflation is a problem, the Fed can raise rates. They probably would like some breathing room above 0%.
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