deflation risk

Currency Wars: How Ben Bernanke Outsmarted China

After years of exhorting China to increase the value of its yuan, the currency is finally rising: It has appreciated some 3.5% since June while China battles inflation and works to cool its red-hot economy. Here's how the Fed managed to succeed where political wrangling fell short.

Should the Fed Worry About Unemployment?

When the economic gurus at the Fed move the levers of U.S. monetary policy, they do so with two often-conflicting goals in mind: promoting maximum employment and keeping prices stable. Many critics are now arguing that that Fed should ignore unemployment and focus solely on prices.