The coastal Georgia island where a secret 1910 meeting produced a blueprint for the Federal Reserve led central bankers 100 years later to consider the lessons of history as they move into new monetary territory.
Federal Reserve Chairman Ben S. Bernanke invoked the inflation-fighting legacy of the late Nobel laureate economist Milton Friedman and, for the third time in as many days, defended the Fed’s expansion of record stimulus.
E. Gerald Corrigan , former Federal Reserve Bank of New York president, said he’s concerned that the central bank’s effort to boost inflation by expanding stimulus risks causing price increases out of the Fed’s control.
Federal Reserve Chairman Ben Bernanke is taking flak from international policy types for his latest foray into quantitative easing. He had to defend his actions to economists and former policy makers at a Jekyll Island, Georgia, conference last week. He even had to submit to a “cease and desist” order from Mama Grizzly Fed Watcher extraordinaire, Sarah Palin .
The risks stemming from the Federal Reserve’s efforts to stimulate the economy through bond purchases are “humongous” and the central bank doesn’t fully understand the potential effects, said Nassim Taleb , author of “The Black Swan.”
Federal Reserve Chairman Ben S. Bernanke said the central bank must focus on the U.S. rather than overseas economies when trying to spur the recovery by purchasing an additional $600 billion in Treasuries.