WASHINGTON (AP) – Federal Reserve Chairman Ben Bernanke told Congress Thursday that the nation is "not anywhere near" the dangerous stagflation situation that prevailed in the 1970s.
With the economy slowing and inflation rising, fears have grown that the country could be headed for the dreaded twin evils known as stagflation.
"I don't anticipate stagflation," Bernanke told the Senate Banking Committee.
Still, high energy prices and rising inflation does complicate the Fed's job of trying to keep the economy growing and inflation contained, Bernanke acknowledged.
Copyright 2008 The Associated Press.