Bernanke warns on oil price threat to US recovery

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The soaring oil price poses a threat to the US economic recovery if price hikes are sustained, warns Federal Reserve chief Ben Bernanke.

Addressing the Senate Banking Committee, Bernanke said Middle East unrest and the subsequent rise in commodity prices will probably translate into a modest and short-lived increase in consumer inflation, the New York Times reports. However, sustained rises in the prices of oil and other commodities would represent a threat both to economic growth and to overall price stability, he says. The real concerns, though, remain US unemployment figures. "Until we see a sustained period of stronger job creation, we cannot consider the recovery to be truly established," he adds. But he notes ...

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