Although the recent increase in inflation is a concern, the appropriate diagnosis and policy response depend on whether the rise in inflation is likely to persist. So far at least, there is not much evidence that inflation is becoming broad-based or ingrained in our economy; indeed, increases in the price of a single product--gasoline--account for the bulk of the recent increase in consumer price inflation.

Organization of the Petroleum Exporting Countries (OPEC) reported that they would keep production quotas at current quota. The move gave crude-oil futures a boost, moving them above $100 a barrel. In Vienna, OPEC member countries decided to maintain official production targets after failing to reach an agreement to raise output. Some OPEC members vowed to evaluate the issue again, in three months. Bernanke said that both jobs and growth would pick up in the final six months of the year.