Bernanke Archive

Bernanke on the swap lines

[Skip to the end] Last week’s swap line number reported by the Fed was down to $521 billion from $608 billion. While still a very large number, it is coming down, and hopefully will continue to do so. However, the continued fall in commodities prices, particularly crude oil, means dollars are ‘harder ...Read More

Fed Chairman Bernanke’s remarks

[Skip to the end] Nothing a payroll tax holiday can’t fix in short order. Market tumbles further on Bernanke comments Wednesday October 15, 12:46 pm ET NEW YORK (Reuters) – Stocks fell to session lows on Wednesday, with the benchmark S&P 500 briefly tumbling more than 5 percent, after Federal Reserve Chairman ...Read More


[Skip to the end] Karim writes: Not a word you often see a Fed Chairman use: ….stabilization of our financial system is an essential precondition for economic recovery. I urge the Congress to act quickly to address the grave threats to financial stability that we currently face. He outlined the channels in ...Read More


[Skip to the end] Karim writes: Most of testimony explaining actions of recent weeks. Direct comments on economy below. Focus on enabling financial conditions to improve ‘for a protracted period’ means that in Bernanke’s mind that hikes are off the table for a ‘protracted period’ and cuts may be on the table ...Read More

NYT: Fed to Give A.I.G. $85 bln Loan and Takeecon

[Skip to the end] The Fed has a major strategic advantage over private sector buyers. With the Fed making the loan, credit spreads in general should narrow. This will add value to AIG’s short credit position which is where most of the mark to market losses are. So the Fed’s actions to ...Read More

Re: Is Fischer correct?

[Skip to the end] (an email exchange) Not even close! >    >   On Mon, Aug 25, 2008 at 11:54 PM, Russell wrote: >    >   I found Fischer’s speech. >    >   ”No combination of tax hikes and spending cuts, though, will change the total >   burden borne by current and future generations. For the existing unfunded >   liabilities ...Read More


[Skip to the end] Karim writes: Overall tone->On hold->Economy to stay weak->Recognizes rates are low amid inflation risk->But no mention of acting in a timely manner->Credit strains remain high->Commodities and USD offering respite on inflation outlook. Bulk of speech dedicated to financial infrastructure and supervision. Click to read Bernanke’s Speech Although we ...Read More

Re: Resource allocation

[Skip to the end] >    >   On 8/3/08, Craig wrote: >    >   Ok. And the irony is as prices fall, demand increases again. >   Until consuming governments get their head around that fact >   and put some kind of floor under crude prices to incent >   substitution (which may be beyond their thinking and/or impossible >   politically), it ...Read More

Strong dollar policy

[Skip to the end] When in roam, pay fees of 40¢ per minute. [top] ...Read More

Bernanke testimony on inflation

[Skip to the end] The last few Michigan surveys had one-year inflation expectations over 5%. This is not lost on an FOMC that believes inflation expectations cause inflation. Chairman Bernanke said this yesterday after outlining the inflation expectations/inflation process: “A critical responsibility of monetary policy makers is to prevent that process from ...Read More