• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster

2

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

3

Ex-Google engineer says Larry Page, Sergey Brin and Sundar Pichai share the same trait—it's the lesson he swears by as a $7.2 billion AI CEO

1

Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster

2

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

3

Ex-Google engineer says Larry Page, Sergey Brin and Sundar Pichai share the same trait—it's the lesson he swears by as a $7.2 billion AI CEO

Bernanke points finger on food prices

By
Colin Barr
Colin Barr
Down Arrow Button Icon
By
Colin Barr
Colin Barr
Down Arrow Button Icon
February 3, 2011, 7:11 PM ET
Add Fortune on Google for similar content.

Don’t blame the Fed for soaring food prices, Ben Bernanke said Thursday.

Bernanke, the Fed chairman, shrugged off claims that the Fed’s embrace of easy money is irresponsibly saddling the likes of China, India and Brazil with runaway inflation in vital food and energy goods.



What a headache

Without naming names, Bernanke urged leaders in emerging countries to stop resisting changes that would shield their populations from the ravages of surging prices.

“In some cases, some of the emerging markets are facing inflationary pressure because their own economies are growing faster than their own capacity,” Bernanke said in response to a question at the National Press Club. “It is entirely unfair to attribute excess demand pressures to U.S. monetary policy.”

The comment amounts to the latest pressure on China to loosen its peg to the dollar and for other emerging markets leaders to tighten their own policies. Loose money in those countries is part and parcel of a globe beset with unhealthy economic imbalances — just as it is here.

In response to a question about the civil unrest in the Middle East and the Fed’s role in the months-long surge in commodities prices, Bernanke strongly denied that central bank purchases of Treasury bonds, known as quantitative easing, are the primary driver of higher global food prices.

Instead, Bernanke attributed the surging prices of things like corn, soybeans, sugar and livestock to rising incomes in developing countries.

Higher incomes translate into strong growth in global demand for food, particularly an increased appetite for animal proteins such as beef, pork and chicken.

“As people’s diets become more sophisticated, their demand for food and energy grows,” he said.

Beyond that, Bernanke said, policymakers in developing countries like China, India and Brazil have tools at their disposal to keep inflation under control.

Leaders in those countries have been critical of the Fed’s policy, which they contend results in the United States exporting inflation to their shores. But without singling out any country or leader, Bernanke snapped back that those pointing the finger should first pull the levers available to them.

China, for instance, has kept the value of its currency, the yuan, closely pegged to the dollar — even as China’s growth far exceeds that of the United States and inflation in China threatens to surge.

Were China to allow the yuan to appreciate, Chinese inflation would fall. Of course, so would Chinese exports to rich countries such as the United States and the members of the euro zone. A slowdown in the Chinese export machine could result in a destabilizing loss of jobs in China.

So it is unsurprising that the Chinese are slow to embrace this remedy. Nonetheless, Bernanke is right to point out that surging developing markets growth creates its own headaches — and that it’s hardly fair to pin all that pain on the United States.

“It is up to emerging markets to find the right tools to balance their own growth,” Bernanke said.

About the Author
By Colin Barr
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

Markets feel relief as the U.S. and Iran agree to a ceasefire on their earlier ‘ceasefire’ that was looking at lot like a war over Hormuz
EnergyOil
Markets feel relief as the U.S. and Iran agree to a ceasefire on their earlier ‘ceasefire’ that was looking at lot like a war over Hormuz
By Jason MaJune 28, 2026
5 hours ago
Samsung, SK reportedly to invest $1.3 trillion over 10 years
AIChips
Samsung, SK reportedly to invest $1.3 trillion over 10 years
By Shinhye Kang, Seyoon Kim and BloombergJune 28, 2026
6 hours ago
Big-budget ‘Supergirl’ is among DC Studios’ worst flops for an opening weekend and was reportedly trimmed significantly after test screenings
Arts & EntertainmentMovies
Big-budget ‘Supergirl’ is among DC Studios’ worst flops for an opening weekend and was reportedly trimmed significantly after test screenings
By Jake Coyle and The Associated PressJune 28, 2026
8 hours ago
Fed’s Barkin warns of high inflation, but sees signs of relief
EconomyFederal Reserve
Fed’s Barkin warns of high inflation, but sees signs of relief
By Catarina Saraiva and BloombergJune 28, 2026
8 hours ago
Social Security is headed for a day of reckoning, and Congress is running out of time to save boomers. Lawmakers are proposing some hard choices
EconomySocial Security
Social Security is headed for a day of reckoning, and Congress is running out of time to save boomers. Lawmakers are proposing some hard choices
By Jason MaJune 28, 2026
9 hours ago
Trump’s U-turn on Iran sanctions would unravel decades of curbs
EconomyIran
Trump’s U-turn on Iran sanctions would unravel decades of curbs
By Daniel Flatley, Magdalena Del Valle, Jennifer A. Dlouhy, Jeff Mason and BloombergJune 28, 2026
11 hours ago

Most Popular

Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
Success
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
By Preston ForeJune 27, 2026
2 days ago
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
Success
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
By Sydney LakeJune 25, 2026
4 days ago
Ex-Google engineer says Larry Page, Sergey Brin and Sundar Pichai share the same trait—it's the lesson he swears by as a $7.2 billion AI CEO
Success
Ex-Google engineer says Larry Page, Sergey Brin and Sundar Pichai share the same trait—it's the lesson he swears by as a $7.2 billion AI CEO
By Orianna Rosa RoyleJune 28, 2026
19 hours ago
The retired college professor fighting a $313 trespassing ticket in Wisconsin thinks he's part of a national struggle
Environment
The retired college professor fighting a $313 trespassing ticket in Wisconsin thinks he's part of a national struggle
By Catherina GioinoJune 28, 2026
23 hours ago
Cristiano Ronaldo is soccer's first-ever billionaire: He went from begging for burgers outside McDonald's to landing a $400 million contract
Success
Cristiano Ronaldo is soccer's first-ever billionaire: He went from begging for burgers outside McDonald's to landing a $400 million contract
By Preston ForeJune 28, 2026
18 hours ago
Iran is forcing the U.S. into an escalation trap as a 'shadow war' over the Strait of Hormuz heats up that could kill the tenuous ceasefire
Politics
Iran is forcing the U.S. into an escalation trap as a 'shadow war' over the Strait of Hormuz heats up that could kill the tenuous ceasefire
By Jason MaJune 28, 2026
12 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.