by Calculated Risk on 6/09/2008 09:22:00 PM

From Bloomberg: Bernanke Says Risk of `Substantial Downturn' Receded

Federal Reserve Chairman Ben S. Bernanke said the economic outlook has improved from a month ago, and central bankers will ``strongly resist'' any waning of public confidence in stable prices.

``The risk that the economy has entered a substantial downturn appears to have diminished over the past month or so,'' Bernanke said today in remarks to a Boston Fed conference in Massachusetts. ``The Federal Open Market Committee will strongly resist an erosion of longer-term inflation expectations.''

Here is Bernanke's speech: Outstanding Issues in the Analysis of Inflation