Jon Hilsenrath wrote a good article for the Wall Street Journal describing remarks by Federal Reserve Chairman Ben Bernanke (“Bernanke Makes Case for Further Fed Moves to Boost Economy”). Bernanke believes that inflation is well contained and economic activity is weak justifying monetary easing (actions by the Fed Open Market Committee to increase economic activity). Bernanke suggested that the Fed might purchase long-term Treasury bonds to push down long-term interest rates. He also suggested that the Fed would proceed with caution because of uncertainty about the program’s effectiveness.
Let me reassert my belief that short-term policy instruments are not as effective as sometimes advertised and my belief that policy should focus on creating long-term growth.Replace this text with...
Do You See What I See?
12 hours ago