U.S. Fed chief warns about inflation pressure

WASHINGTON -- June 6, 2006 -- U.S. Federal Reserve Board Chairman Ben Bernanke warned Monday of persistent inflation pressure despite moderating economic growth, and vowed to focus on prices in determining monetary steps.

The medium-term inflation outlook ''will receive particular scrutiny'' when the U.S. central bank decides on its next credit move at its policy-making Federal Open Market Committee meeting on June 28-29, Bernanke said in an address to the World Monetary Conference.

There is a strong consensus among the FOMC members that maintaining low and stable inflation is essential, and the panel ''will be vigilant to ensure that the recent pattern of elevated monthly core inflation readings is not sustained,'' he said.

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