Well-anchored inflationary expectations also allowed rates to be cut more vigorously when economies stumbled in 2001 after the stockmarket crash.

ECONOMIST: Economics focus

This strategy has been conditioned on our expectation that the prices of oil and other commodities would ultimately stabilize, in part as the result of slowing global growth, and that this outcome, together with well-anchored inflation expectations and increased slack in resource utilization, would foster a return to price stability in the medium run.

FORBES: Reducing Systemic Risk

At the same time, overall consumer price inflation should moderate from its recent rates, and the public's longer-term inflation expectations should remain reasonably well anchored.

NPR: Economic Swoon to Continue, Bernanke Says

Meanwhile, inflation is subdued, running at or below our long-run objective of 2 percent, while inflation expectations remain well anchored .

FORBES: Demand Curves Slope Downward: Fed Policy Edition

Bernanke says that inflation expectations are "reasonably well anchored, " but adds that this could unravel if the Fed's inflation-fighting credibility is eroded by continued increases in food and energy prices.

FORBES: Magazine Article

To date, inflation expectations appear to have remained reasonably well anchored, but any tendency of inflation expectations to become unmoored or for the Fed's inflation-fighting credibility to be eroded could greatly complicate the task of sustaining price stability and reduce the central bank's policy flexibility to counter shortfalls in growth in the future.

NPR: Economic Swoon to Continue, Bernanke Says

Anchored by a 320-acre man-made lake, it counts singer Celine Dion among the well-heeled owners, but saw home values plunge, sales stall and foreclosures rise.

WSJ: Green Shoots in the Las Vegas Desert