Ben Bernanke has now said that his concern is market stability, and not inflation.

It happens that it looks like the inflation numbers that he works with are completely bogus:

One of the “secrets” to Alan “Bubbles” Greenspan’s success as Fed chairman, was that he successfully pushed for adjustments to the consumer price index (CPI) to lower the reported inflation rate.

Right now, we are generally reporting an inflation rate of less than 3%.

There has been an agreement between the Fed and the government to understate inflation for some time. The justification is that it makes everyone look good, and allows for stealth cuts for entitlements.