Bernanke signals end to rate reductions

WASHINGTON, June 3 (UPI) -- U.S. Federal Reserve Chairman Ben Bernanke's remarks via satellite Tuesday signaled an end of the central bank's current focus on market liquidity.

After seven key reductions in the intended federal funds rate cuts since September -- dropping key rates from 5.25 percent to 2 percent -- analysts concluded Bernanke's focus on inflation would mean an end to the current run of reductions.

"For now, policy seems well positioned to promote moderate growth and price stability over time," Bernanke said.

"Inflation has remained high," he said, pointing to "sharp increases in the prices of globally traded commodities."

Bernanke presentation for an International Monetary Conference in Barcelona, Spain put U.S. policy more in step with major European banks, which have focused on inflationary concerns and kept key lending rates largely unchanged this year.