Ever since the U.S. Federal Reserve lowered its benchmark rate almost to zero and embarked on a series of large-scale asset purchases, Chairman Ben Bernanke has been using his pulpit to explain how it all is supposed to work.
Federal Reserve Chairman Ben S. Bernanke ’s testimony to Congress shows concern over deflation, according to Marvin Goodfriend , an economist at Carnegie Mellon University and a former Richmond Fed policy adviser.
The Federal Reserve should wait for more evidence the economy is slowing before starting a third round of quantitative easing, or QE3, according to Marvin Goodfriend, a former Richmond Fed policy adviser.
Chairman Ben S. Bernanke moved the Federal Reserve further into uncharted policy territory in combating joblessness by tying the bank’s interest-rate outlook to unemployment and inflation, while committing to an even faster expansion of the central bank’s balance sheet.
The Federal Reserve appears to be backing away from its commitment to keep inflation at 2 percent with its plan to buy mortgage-backed securities until employment improves, two former Fed officials said.
Ben S. Bernanke for the first time pledged that the Federal Reserve will buy bonds until the economy gets closer to his goals, cementing his place as the Fed’s most innovative chairman and signaling the battle against unemployment eclipses any concerns about inflation for now.
Ben S. Bernanke argued for 15 years that the Federal Reserve should announce a numerical inflation target. When he finally got his way in January, the victory allowed the central bank to elevate its other mandate: full employment.
Investors around the world are waiting to find out whether Federal Reserve Chairman Ben Bernanke puts any QE3 in his opening remarks today at the Kansas City Fed’s Jackson Hole conference. It was one year ago at the same event that he outlined the Fed’s policy options for an ailing economy, including a second round of quantitative easing that started in early November.