Tuesday, January 15, 2013

Did Ben Bernanke Admit on Monday that the Fed is Clueless?

Yesterday, Fed chairman Ben Bernanke answered questions at the University of Michigan. NYT reports on one exchange:
Why did the Fed decide in December to stop predicting an end date for low interest rates, and instead to describe its economic objectives?

“We gave a date which was just our best guess, and then it changed a couple of times,” Mr. Bernanke said.
How is this anything other than Bernanke admitting that the Fed is clueless about trends in the economy and that it has given up pretending it knows?

1 comment:

  1. You can now watch the entire speech on C-Span:


    Best part: Dean Collins noted that Bernanke studied responses to the Great Depression as a professor of economics and had a chance to put his research to work. In dealing with the worst downturn since the 1930s, she asked the Fed chairman what his biggest surprise was.

    Said Bernanke: "The crisis."

    From The Detroit News: http://www.detroitnews.com/article/20130115/BIZ/301150320#ixzz2I6vkkp3d

    Held at the Gerald R. "If I'm so dumb, how come I'm president" Ford School of Public Policy.

    If Bernanke's so dumb, how come he's chairman?