CIAO DATE: 05/2009
January 2009
American Enterprise Institute for Public Policy Research
On December 16, 2008, Federal Reserve chairman Ben Bernanke exercised decisive leadership at a watershed meeting of the Federal Open Market Committee (FOMC). In its official statement after the meeting, the committee pledged to "employ all available tools to promote the resumption of sustainable economic growth and to preserve price stability."[1] The pledge to preserve price stability was not a commitment to fight inflation, as is typical, but a highly unusual commitment to fight deflation.
Resource link: The Fed Makes History [PDF] - 96K