Stanford University Professor John Taylor, creator of a rule for guiding monetary policy, said discretionary economic and spending policies are to blame for the U.S. recovery being “as disappointing as ever.”
Intellectually, Ben S. Bernanke was prepared to tackle the gravest economic crisis since the 1930s as chairman of the Federal Reserve. A Princeton University economics professor, he was an expert on the causes of the Great Depression. He was a practitioner as well as economic historian, serving on the Fed’s Board of Governors and as chairman of President George W. Bush’s Council of Economic Advisers. Yet in other ways, from dealings with reporters to bankers and members of Congress, there was little that could have prepared Bernanke for the challenges to come. Here are some highlights of his eight-year term, which ends tomorrow:
In Stanley Fischer, the Federal Reserve would gain a financial statesman with contacts and credibility around the world as it begins to pull back on record stimulus, possibly unsettling foreign markets.
The Federal Reserve’s balance sheet is poised to exceed $4 trillion, prompting warnings its record easing is inflating asset-price bubbles and drawing renewed lawmaker scrutiny just as Janet Yellen prepares to take charge.
Former Federal Reserve Vice Chairman Donald Kohn is leveraging his 40 years of public service by charging a speaker’s fee that puts him in a league with Nobel Prize-winning economist Joseph Stiglitz and Oscar- winning actress Geena Davis .
Former Federal Reserve Vice Chairman Donald Kohn said that while forces slowing inflation will begin to ease during the next few years, prices probably won’t begin to rise at the Fed’s preferred 2 percent rate for many years.