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Traditionally, the Fed has focused on restraining inflation, not stoking it.
The government has stimulated growth by restraining inflation, mainly by depressing workers' wages.
Still, until today, bank officials insisted that they were more worried about restraining inflation.
For example, the Fed itself, as noted on its "Kids!" page, has the sometimes incoherent twin mission of restraining inflation and promoting full employment.
For more than a year, the Chinese central bank tried to squeeze the country's banking system in hopes of restraining inflation.
A flood of imports from Asian countries that had devalued their currencies in the late 90's was already restraining inflation.
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One worry is that the Bundesbank might use national tools (eg, raising bank-capital requirements) to restrain inflation.
Its budget may restrain inflation but will hardly dent unemployment, raise living standards or make up for years of underinvestment.
Productivity gains, Mr. Bernanke said, would restrain inflation and provide room for interest-rate setters to "be patient" in the next six months.
This has helped China restrain inflation in consumer prices, which accelerated this spring to an annual pace of more than 8percentt.
That's because once the economy returned to the target path, Fed policy — a commitment to ensuring nominal G.D.P. growth of 4 1/2 percent — would restrain inflation.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com