Friday, August 31, 2012

Fed Chairman's Remarks at Jackson Hole

"The data we had to exhaust
To show the recovery's lost
May allow me to ease
Now that everyone sees
That the benefit outweighs the cost."

The Economist's Greg Ip explains why Federal Reserve Chairman Ben Bernanke has waited so long to take action to accelerate the stalled US recovery: "Since Mr Bernanke could not escape criticism regardless of what the Fed did, tactically he was best served by waiting until the case for action was unambiguous, unsurprising and, most important, well articulated. The data have made the case unambiguous: employment and growth are weak and inflation by the Fed's preferred measure has edged down. By [the next FOMC meeting on] September 13th, it will certainly be unsurprising. Mr Bernanke's task today was to articulate the case."

See the link above for a comprehensive analysis of the Chairman's speech on Friday at the annual Kansas City Fed economic symposium at Jackson Hole, Wyoming.

No comments:

Post a Comment

Popular Posts