. August 20, 2007 SouthAmerica: Regarding Ben Bernankeâs bail out of Wall Street. Fed Chairman Ben Bernanke inherited a major mess from the Alan Greenspan years. Now he is giving a break to the people who made bad investment choices and is helping to bail them out from further losses. I live in New Jersey only a half hour from New York City and I can tell you that inflation in our area it is a lot higher than the official 2.7 inflation rate reported for the entire country. In our area prices are going up, up, up and away. I noticed the prices going up quite a lot on local diners, and restaurants. Everything is going up in price including the cable bill, apartment rentals, and all kinds of food prices at the supermarket. Donkin Donuts, Starbucks, and Borders increased the prices of their coffee in the last 2 weeks. When you meet people at Borders and at your friends parties and the subject of the conversation is about the increase of prices of food items in the area then I realized that other people also had noticed that prices were increasing above the usual rate of price increases. This avalanche of price increases used to be called inflation. When you have inflation such as the current inflation in our area the Federal Reserve is not supposed to lower the Fed Funds rate. Fed Chairman Ben Bernanke probably will make a major mistake when he lowers the Fed Funds rate in the coming months. I wonder what former Fed Chairman Paul Volcker thinks about the path that the Federal Reserve should take right now? I would not be surprised if former Fed Chairman Paul Volcker would tougher up and keep the Fed Funds at the current level even at the price of pushing the economy into a recession. Thatâs what I would do if I were the Fed Chairman right now. .