Financial Times (February 25)
When then Federal Reserve Chairman Ben Bernanke signaled a potential policy change in 2013, he “triggered a ‘taper tantrum’ in financial markets across the world” and “put a chill on the US housing market.” Current Fed Chairman Janet Yellen “is determined not to do the same and catch the markets unaware.” Judging from the calm market reaction to her recent guidance, she is earning “high marks” for successfully managing expectations.
Tags: Bernanke, Calm, Expectations, Fed, Housing, Markets, Reaction, Taper tantrum, U.S., Yellen
Los Angeles Times (October 28)
“Policymakers are clear about their bond-buying goal, but the Street isn’t listening.” Current Federal Reserve Chairman Ben S. Bernanke stated publicly that quantitative easing would continue until unemployment falls to 6.5%. “If we generate 200,000 new jobs every month, tapering starts in November 2016. If we see an average of only 148,000 new jobs each month, we won’t ever see Fed tapering…. Tapering is still a long way off.”
Tags: Bernanke, Bond-buying, Fed, Jobs, Policymakers, Quantitative easing, Tapering, Unemployment, Wall Street
Washington Post (September 19)
The massive economic power of the Federal Reserve again moved markets this week. “This much Fed power is not in the long-term interest of the U.S. economy, nor that of the world. We say this not because the Fed’s policies under Mr. Bernanke have been wrong. To the contrary, taking interest rates to zero was aggressive but appropriate in the face of an epic recession…. Yet the Fed’s huge role represents more responsibility for the economy than a single technocratic institution — or any one fallible, unelected official, even a dedicated, talented one such as Mr. Bernanke — should bear for too long.”
Tags: Aggressive, Ben Bernanke, Bernanke, Economy, Federal Reserve, Institution, Interest rates, Power, Recession, Responsibility, U.S.
Forbes (April 4, 2013)
“Quantitative easing is a global craze, and now a man named Kuroda is showing Bernanke and Draghi how to do it big time….While markets expected Kuroda’s BoJ to make a bold move, the size of the purchases and the wide array of financial assets the central bank plans to stock up on came as a surprise, boosting Japanese stocks and sending the Nikkei 225 higher by 2.2%.”
Tags: Bernanke, BOJ, Central bank, Draghi, Japan, Kuroda, Nikkei, Quantitative easing, Stocks
Financial Times (September 21)
Concern is dampening initial celebration over the third quantitative easing (QE3) program, which was announced by Federal Reserve Chairman Ben Bernanke last week. This monetary program is not a substitute for a proper fiscal solution. QE3 is neither a “free lunch,” nor without risk. Still, “Mr Bernanke has shown commendable bravery in compensating for Congress’s inaction. But his aggressive policy stance will not work forever. US politicians would be foolish not to use wisely the time the Fed has bought them.”
Tags: Bernanke, Congress, Fed, Fiscal policy, Monetary policy, QE3, U.S.
Bloomberg (June 8)
“The Fed ought to get off the fence…. Bernanke and his colleagues should decide on a new program of monetary easing…. We think the case is stacked pretty strongly in favor of more quantitative easing— the Fed’s unorthodox (and controversial) method for driving long-term interest rates lower by buying government debt.”
Tags: Bernanke, Debt, Fed, Interest rates, Quantitative easing, U.S.
New York Times (June 12)New York Times (June 12)
Chairman of the Federal Reserve Ben Bernanke stated “growth will recover later in the year as gas prices fall and the effects of the Japanese tsunami fade.” “Too-easy,” the Times says of his answer. “Even if temporary setbacks were to blame, the economy’s inability to take hits without backsliding is a sign of underlying fragility.” Big federal budget cuts should be delayed while measures to stimulate the economy, like job creation and mortgage relief for homeowners, should be undertaken.
Chairman of the Federal Reserve Ben Bernanke stated “growth will recover later in the year as gas prices fall and the effects of the Japanese tsunami fade.” “Too-easy,” the Times says of his answer. “Even if temporary setbacks were to blame, the economy’s inability to take hits without backsliding is a sign of underlying fragility.” Big federal budget cuts should be delayed while measures to stimulate the economy, like job creation and mortgage relief for homeowners, should be undertaken.
