The lackluster U.S. economic recovery has fueled an unusually public argument between two of the most prominent economists in the country: Nobel prize-winning New York Times columnist Paul Krugman has accused Fed Chairman Ben Bernanke of not doing enough to help spur the economy. Bernanke has responded by pointing out that the Fed has already acted aggressively through two rounds of monetary stimulus and, in any event, has a responsibility to help maintain “price stability,” something that could be jeopardized by raising the target inflation rate, which Krugman advocates. Academic jargon aside, the dispute underscores the mounting frustration among pundits and policy-makers alike, caused by slowing economic growth and continued high unemployment.
Are inflation hawks preparing to take flight? That’s the sense one gets reading comments made by two U.S. central bank officials Tuesday, including Dallas Fed President Richard Fisher, who said that corporate chiefs have been sounding the alarm about an increase in prices thanks to the Fed’s easy money policy.
In the third of four lectures to students at George Washington University, Federal Reserve Chairman Ben Bernanke said Tuesday that U.S. government intervention during the financial crisis prevented a “total meltdown” in the U.S. economy.
The U.S. economy needs to grow faster to maintain job market momentum, Federal Reserve Chairman Ben Bernanke said in a speech Monday; as a result, the Fed will continue its low-interest rate policy, hoping to spur consumer demand and business investment. Stocks rose on Bernanke’s comments, with some on Wall Street reading hints about a [...]
The Federal Reserve turned a profit of $77.4 billion last year, driven by a dramatic increase in its balance sheet due to its policy of buying up securities to help stimulate economic growth.
The greatest threat to any long-term investor is inflation. It not only erodes the value of stocks and bonds, but also depresses economic growth and misleads policymakers.
It’s wild to think that a strawberry picker who earned $15,000 qualified for a $720,000 mortgage in 2005. But it’s just as ridiculous to think that a buyer with a credit score of 720 and who can put 20% down may not have qualified for a loan in 2010. After the subprime mess of 2008, [...]
Ben Bernanke is playing chicken with the real economy. By most measures, the U.S. economy in the past few months seems to be improving. The unemployment rate has been falling. Manufacturing appears to be perking up. U.S. car companies are back in business. And home sales even rose in December.
Bernanke made a speech this morning to other central bankers, economists and journalists at an annual forum in Jackson Hole. There were a number of key phrases Fed watchers were expecting to hear and, hopefully, not hear. And here’s the tally. Bernanke used some variation of the work “slow” seven times. So, as expected, Bernanke [...]
Fed chairman Ben Bernanke needs your help. Bernanke is looking for a word that means longer than extended to tell people how long he plans to keep interest rates low. And what he is looking for is a word that means a really, really long time–really, really. Superextended. Overextended. Superduper-extended. So this is what the [...]
