WASHINGTON, July 19 (UPI) -- Ben Bernanke, chairman of the Federal Reserve, told a U.S. Senate committee Wednesday that inflation was coming under control.
"As measured by the price index for personal consumption expenditures excluding food and energy, inflation is projected to be 2.25 percent to 2.5 percent this year and then to edge lower, to 2 percent to 2.25 percent next year."
He cited a slowing economy as a key reason why inflation appeared to be generally under control.
"The (Federal Open Market Committee) projections ... reflect our assessment that, with appropriate monetary policy and in the absence of significant unforeseen developments, the economy should continue to expand at a solid and sustainable pace and core inflation should decline from its recent level over the medium term," the Fed chairman said.
Bernanke's comments sparked a surge on Wall Street as major indexes jumped nearly 2 percent.
