Financial crisis limits Fed's ability to curb inflation

07/17/2008 | CNBC

Although central bankers are concerned with rising inflation, the Federal Reserve's policy on interest rates may be suspended indefinitely as the global financial crisis continues. Fed Chairman Ben Bernanke surprised market participants by reversing his stance on the Fed's most urgent focus from curbing inflation to stabilizing financial markets. The about-face was apparently prompted by a series of meetings to come up with a rescue plan for Fannie Mae and Freddie Mac.

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