Pulling back liquidity won't be easy for Bernanke

08/21/2009 | NYTimes.com

Federal Reserve Chairman Ben Bernanke will be walking something of a fiscal tightrope when he decides it is time to start drying up liquidity the central bank's emergency programs have poured into the economy. If he moves too fast, he risks destroying a fragile recovery. If the Fed stimulates the economy too long, it could trigger runaway inflation, possibly ending with 1970s-style "stagflation," a mix of economic stagnation and surging prices.

View Full Article in:

NYTimes.com