Bernanke: Fed Will Do What It Can to Help Stimulate the Economy

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“There would appear — all else being equal — to be a case for further action,” Federal Reserve chairman Ben Bernanke said in a speech today. But purchasing more Treasury bonds and managing the rate of inflation by monkeying around with interest rates can only do so much, and the Fed chairman warned. For instance:


Whereas monetary policy makers clearly have the ability to determine the inflation rate in the long run, they have little or no control over the longer-run sustainable unemployment rate, which is primarily determined by demographic and structural factors, not by monetary policy.

So don’t go looking at him if you still can’t get a job. Bernanke also made clear that the Fed is flying by the seat of its pants here, and it’s possible that things won’t work out the way they hope.

So don’t go looking at him if you still can’t get a job. Bernanke also made clear that the Fed is flying by the seat of its pants here, and it’s possible that things won’t work out the way they hope.


And if this happens it will, of course, be your fault.


That’s all. Don’t say he didn’t warn you!

Monetary Policy Objectives and Tools in a Low-Inflation Environment [Federal Reserve via NYT]