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Bernanke signals discomfort with weak dollar
Breaking a long-standing tradition of relative silence on the dollar, Federal Reserve Board Chairman Ben Bernanke signaled discomfort Tuesday with the ramification of a weak dollar on the domestic U.S. economy. The weak currency has contributed to an "unwelcome rise" in inflation, he said in a speech to an international bankers forum. The central bank is "attentive to the implications of changes in the value of the dollar for inflation and inflation expectations and will continue to formulate policy to guard against risks" to price stability and sustainable growth, he said. Over time, Fed policy will be a key factor "ensuring that the dollar remains a strong, stable currency."