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Friday, June 15, 2012

Monetary

News                                                                                                                             
WSJ | Consumer Prices Drop on Energy
U.S. consumer prices declined last month for the first time in two years and separate data signaled the labor market continued to weaken, fueling market speculation of possible Federal Reserve action next week to bolster the economy.
Fortune | Inflation likely to continue to fall
Federal Reserve chairman Ben Bernanke often gets criticized for overreacting to the stock market. But maybe that's exactly what he should be doing.
Market Watch | Draghi: ECB stands ready to supply liquidity
The European Central Bank stands ready to provide support to the euro-zone system, said its President, Mario Draghi, in prepared statements at a speech on Friday. "The Eurosystem will continue to supply liquidity to solvent banks where needed," he said at the ECB Watcher's conference.
Bloomberg | Bernanke’s Inflation View Validated as Commodities Fall
A plunge in global commodity prices is tilting the balance in favor of Federal Reserve Chairman Ben S. Bernanke and colleagues who may seek further action to boost growth as the U.S. labor market falters and risks from Europe rise.

Econ Comments & Analysis                                                                                            
Bloomberg | Europe May Force Bernanke to Flip the Twist
As the Federal Reserve prepares to meet next week, policy makers are under conflicting pressure to do more to stimulate the economy and to swear off quantitative easing. And that’s just from inside the Fed.