In a July 20-dated written opinion piece for the Wall Street Journal, the US Federal Reserve Chairman Ben Bernanke expressed confidence in the central bank's ability to curtail inflation once the recovery of the economy sets in.

However, about the pace as well as timing of the measures to curb inflation Bernanke said these would largely depend on the strength of the economy, and would follow a possibly "extended period" of accommodative measures aimed at resurrecting lending.

Bernanke reiterated that the central bank would use a number of 'tools' to tighten lending policy, "when the economic outlook requires us to do so." As per Bernanke, two such tools to squeeze the policy included - a raise in the interest rate on bank reserves held at the central bank, and a reduction in the overall stock of reserves.

With reference to the record reserves that banks have amassed, Bernanke delineated five ways that will help the Fed combat the problem of money supply and further surging inflation. He said along with using the interest rate on banks' deposits with the Fed as a principal tool, the officials will also undertake other measures like reverse- repurchase agreements and term deposits.

Bernanke's article, which preceded his semiannual monetary-policy testimony to Congress by a day, apparently is a reassurance to investors that the Fed will restrain consumer prices when recovery takes root!