Ben Bernanke Says Federal Reserve Is Not Monetizing The Debt
FOMC Chairman Ben Bernanke is speaking Monday to the Economic Club of Indiana in Indianapolis with his speech titled “Five Questions about the Federal Reserve and Monetary Policy.” As far as a brief summary, here are some comments before the…
Bernanke sees the economy continuing to expand and he expects that inflation will remain low for the foreseeable future. The growth has not been enough to help the jobs picture very much, but tax reform and fiscal changes would help the economy also as monetary policy cannot fix everything. Bernanke reiterated that the Fed will keep rates low even after the real recovery begins. The part that we are keen to see is that Bernanke claims that the Fed is not monetizing the debt. We will leave that interpretation up to you without any sarcastic comments.
His 5 questions addressed were as follows:
1. What are the Fed’s objectives, and how is it trying to meet them?
2. What’s the relationship between the Fed’s monetary policy and the fiscal decisions of the Administration and the Congress?
3. What is the risk that the Fed’s accommodative monetary policy will lead to inflation?
4. How does the Fed’s monetary policy affect savers and investors?
5. How is the Federal Reserve held accountable in our democratic society?
JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
