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Archive for the tag “Ben Bernanke”

Genteel Warriors

Central banking isn’t a contact sport like football, or even cricket. But the head of India’s central bank, who until recently was living and working in the U.S., is throwing some sharp elbows at his counterparts at the Federal Reserve. This is as close to a brawl as you’re likely to see in the genteel world of official monetary policy.

Read Here – Businessweek

Fading Headwinds

Ben S. Bernanke says the headwinds that have held back the U.S. economy may be abating, leaving the country poised for faster growth as his tenure as Federal Reserve chairman comes to an end.

Read Here – Bloomberg

How Much Longer Before The Fed Cracks?

The U.S. unemployment rate fell to 7 percent in November, the lowest since November 2008, raising questions about how much longer the Fed will keep fueling the economy with monetary stimulus.

Read Here – Businessweek

Let It Ride – The Economist

Global Slowdown Set To Impinge Policy

As evidence mounts that a mid-year slowdown is taking place in the world economy, the next few days will offer a clearer glimpse of how that will impinge on policymaking and buoyant financial markets.

Read Here – Reuters

Ben And His Worries

The bulls are running on Wall Street, but the chief of America’s central bank worries that the market remains dangerously fragile. Federal Reserve Chairman Ben Bernanke explained why on Friday, May 10, in a speech in Chicago at the Fed’s branch there.

Here are five things that nag at Bernanke, in his own words.

Read Here – Businessweek

Timothy Geithner on Populism, Paul Ryan, and His Legacy

Timothy Geithner took over as Treasury Secretary in the middle of the greatest financial crisis since the Great Depression. In four years, he helped design the largest government stimulus package in history, and contended with a weak recovery, millions of Americans losing their homes, obstinately high unemployment and complicated budget negotiations. To his fans, he is the figure most responsible for stabilizing the banking system and preventing a catastrophic economic collapse. To his critics, he was excessively generous to bankers and failed to change a system where some banks remained “too big to fail.”  In a wide-ranging interview during his last days at Treasury, he kept returning to what has become one of his signature themes—the importance of putting “policy ahead of politics.” All too often, in his view, the best economic policies have enormous up-front political costs. We began by talking about the financial crisis of 2008.

Read Here – The New Republic

Economic Optimism Now Official

Economic optimism is now official. The year ahead could be “a very good one for the American economy,” Ben Bernanke, the chairman of the Federal Reservedeclared on Tuesday. If he turns out to be right, these words could probably be applied to the world economy as a whole.

Since Bernanke, even more than other central bankers, has spent the past four years warning of perils such as the “fiscal cliff” and the dismal condition of the U.S. labor market, this statement, delivered in the carefully worded peroration of a speech to the prestigious Economic Club of New York, marks an important turning point.

Not because Bernanke has a crystal ball that offers him economic clairvoyance. But because his views have an enormous impact on business and financial sentiment around the world. And sentiment — especially about government policies — is the biggest problem for the world economy today.

Read Here – Reuters

Why Investors Are Fine With a Second Obama Term

In theory and on paper, there should be no doubt that the market would much rather have a deregulating, tax-cutting, financially savvy investor in the White House. Mitt Romney is the closest thing to an accomplished businessman to get this far in a presidential race since Ross Perot ran 20 years ago.

Yet you can’t help but get the sense that the market prefers continuation of the status quo: a Barack Obama presidency, coupled with an uncooperative, GOP-led House of Representatives and more of Ben Bernanke, the most accommodating chairman in the history of the Federal Reserve.

Read Here – Businessweek

Ben Bernanke Is Locking in His Legacy

Michael Feroli, chief U.S. economist at JPMorgan Chase, has a fascinating analysis out Thursday on how Federal Reserve Chairman Ben Bernanke is moving to lock in new procedures for setting interest rates that will last long after his term ends in January 2014. The upshot is that Bernanke, who vowed to depersonalize the Fed, could end up imprinting his style on the central bank much more strongly than did his predecessor, Alan Greenspan.

The procedural changes “would add a significant inertial element” that would keep policymaking from changing quickly even after Bernanke has left the Fed, Feroli says.

Read Here – Businessweek

Turning from Green to Red

IN TOKYO last week the bigwigs of international finance paid close attention to a speech by Ben Bernanke, chairman of America’s Federal Reserve. His speech urged them, in effect, to pay less attention. Many policymakers in emerging markets complain that Fed easing destabilises their economies, contributing to higher inflation and asset prices. Mr Bernanke pointed out that emerging economies can insulate themselves from his decisions by simply decoupling their currencies from the dollar. It is their habit of shadowing America’s currency, however loosely, that obliges emerging economies to ease monetary policy whenever he does.

Read Here – The Economist

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