Ben Bernanke extolled the benefits of inflation targeting in his confirmation hearing to be the next Federal Reserve chairman yesterday, saying that a well-defined inflation objective was consistent with the Fed's current practices and Congressional mandate.

Mr Bernanke pledged continuity with Alan Greenspan's approach to monetary policy in a confident performance before the Senate banking committee. He singled out the importance of long-run price stability as the Fed's long-term objective, the benefits of a flexible "risk management" approach, and the strides the central bank has taken in increasing its transparency and accountability.