Ben S. Bernanke, the nominee to succeed Alan Greenspan as chairman of US Federal Reserve, told a US Senate committee on Tuesday that it was a "false dichotomy" to assume that low inflation was at odds with rising wages and greater income equality.According to a report on the website of New York Times, "Middle-income living standards, and poverty for that matter, are best addressed through employment growth," Bernanke said during his confirmation hearing before the Senate banking, housing and urban affairs committee. "By maintaining low inflation and low expectations of inflation, you can create new employment."In his first extended public appearance since President Bush nominated him to lead the Fed, Bernanke stoutly defended his proposal to base monetary policy on an explicit target for inflation, and asserted that he would not weaken the central bank's dual mandate of promoting full employment as well as stable prices, the report added.In describing his approach, Bernanke sharply distanced it from those of some central banks that focus almost exclusively on an inflation target and not at all on promoting growth. "I don't agree with that," Bernanke declared flatly.Members of the committee made it clear that Bernanke enjoys overwhelming support in the Senate, and is all but certain to be confirmed soon. They also warned him to maintain independence from the White House where he was President Bush's chief economic adviser."I assure this committee that, if I am confirmed, I will be strictly independent of all political influences," Bernanke said.
