Bernanke Archive

FT: Time for comrade Paulson to pull the plug on the Fannie and Freddie charade

[Skip to the end] Totally misguided regarding public purpose. For one thing, the shareholders of the agencies are still there for ‘market discipline’ – all that’s been done for them is eliminated liquidity issues, not solvency issues. At the end of the day a lot of houses were built for a lot ...Read More

Bernanke’s July 07 speech and today’s inflation issue

[Skip to the end] From Chairman Bernanke’s July 07 speech: As you know, the control of inflation is central to good monetary policy. Price stability, which is one leg of the Federal Reserve’s dual mandate from the Congress, is a good thing in itself, for reasons that economists understand much better today ...Read More

Re: Mainstream sounding off on inflation

[Skip to the end] (an email exchange) On Thu, Jun 26, 2008 at 2:25 PM, Tom wrote: > > >   Where’s Bernanke’s Inner Volcker? by Larry Kudlow (NRO) On the day after an unusually important Fed policy meeting both gold and stocks severely rebuked the central bank’s decision to take no ...Read More

Bloomberg: Mainstream criticism of FOMC

[Skip to the end] As mainstream economists, the Fed knows it took a very large risk when it cut aggressively, hoping its forecasts for ‘moderating inflation’ would play out, and knowing the following would happen if ‘inflation’ accelerated. Bernanke May Regret Interest-Rate Cuts, Lawson Says by Kim-Mai Cutler (Bloomberg) Former U.K. Chancellor ...Read More

Bloomberg: Poole jumps in

[Skip to the end] The Fed’s mission is to not let a relative value story turn into an inflation story. When food/fuel prices rise, consumers have less to spend on other things; so, they should moderate to keep it all a relative value story. But even though core CPI hasn’t gone up ...Read More

Re: Mishkin signal?

[Skip to the end] (an email exchange) > >   On Tue, Jun 10, 2008 at 8:12 AM, anonymous wrote: > >   Fisher’s remark induces one to wonder if Ambrose Evans-Pritchard is >   correct in stating that Fed policy is now being concocted from Dallas. > >   The recent spate of criticism ...Read More

June 9 Bernanke speech

[Skip to the end] Outstanding Issues in the Analysis of Inflation Nonetheless, much remains to be learned about both inflation forecasting and inflation control. In the spirit of this conference, my remarks this evening will highlight some key areas where additional research could help to provide a still-firmer foundation for monetary policymaking. ...Read More

Bloomberg: Jason Furman now top dog for Obama

[Skip to the end] Obama Names Rubin Ally Furman to Economic Policy Post by Kim Chipman and Matthew Benjamin (Bloomberg) Barack Obama’s presidential campaign today named Jason Furman, who worked closely with former Treasury Secretary Robert Rubin, as economic policy director. Not a good sign – Ruben has the fundamental accounting identity ...Read More

Bernanke on inflation expectations

[Skip to the end] Elevated inflation expectations are unacceptable to a mainstream Central Banker, and Bernanke seems to be clearly telling us we’ve reached his limits. To get ahead of the ‘inflation curve’ will mean interest rates of at least the 5.25% level of last August, when the FOMC didn’t cut because ...Read More

Bernanke comments

[Skip to the end] The FOMC can’t possibly believe that a 2% Fed Funds rate is the ‘right’ rate given current CPI of about 4%, core at about 2.5%, GPD moving back up towards 2%, unemployment ‘only’ about 5%, and inflation expectations showing signs of elevating. The 2% Fed Funds rate is ...Read More