May 25, 2006

Bush has confidence in Fed’s Bernanke: adviser

WASHINGTON (Reuters) - President George W. Bush has a high
degree of confidence in Federal Reserve Chairman Ben Bernanke,
a top White House adviser said on Thursday, adding that the new
Fed chief will not allow inflation to pick up.

"Inflation is a concern to all of us," White House economic
adviser Allan Hubbard said in an interview with CNBC.

"But we're very, very confident, the president is very,
very confident in Ben Bernanke and the members of the Federal
Reserve Board. They have made it very clear they are going to
be very hawkish in keeping inflation under control. They are
also going to make certain that the economy is going to grow."

"There is no question that Bernanke is not going to allow
inflation to increase," Hubbard, the director of the National
Economic Council said.