EUR/USD is triggering stops as Bernanke retains a go-slow approach regarding tightening policy.
He says his best guess is that we will see modest growth in 2010, sufficient to lower the unemployment rate, but slower than he would like. Inflation will remain subdued for sometime, he says.
He flatly rejects worries that the growth of the Fed balance sheet will automatically lead to inflation down the road. He says that high unemployment and stable inflation expectations should keep inflation subdued and it could move lower.