How Bernanke Pulled the Fed His Way
Read it all here.
In late August, Federal Reserve Chairman Ben Bernanke argued on behalf of Fed programs to stimulate the lumbering U.S. economy and signaled that more might follow, making headlines in his highly anticipated speech at the Fed’s annual retreat in Jackson Hole, Wyo.
As markets rallied at the prospect of new measures to ease credit, a quiet drama was unfolding behind the scenes. Mr. Bernanke was negotiating a high-stakes plan in a flurry of private conversations with colleagues hesitant about aggressively re-engaging the levers of America’s central bank.
For weeks, Mr. Bernanke made dozens of private calls on days, nights and weekends, trying to build broad support for an unusual bond-buying program he wanted approved during the Fed’s September meeting, according to people familiar with the matter.
It’s not as boring as you might think, if you have some interest in monetary policy.
Here’s another article, a couple of days newer.
He also played down the possibility that the Fed’s policies will lead to a surge in inflation. “The Federal Reserve’s price-stability record is excellent,” Mr. Bernanke said, pointing out that measures of public expectations for inflation remain quite stable.
“I’m confident that we have the necessary tools to withdraw policy accommodation when needed, and that we can do so in a way that allows us to shrink our balance sheet in a deliberate and orderly away,” Mr. Bernanke said.
Reality is not as exciting as the doomsayers would like to make you think, because then you won’t buy their books or pay for their advice out of fear..