Interpreting statements of Federal Reserve Chairmen has long been considered a high art form. During Alan Greenspan’s time, journalists and financial analysts made huge efforts to understand his cryptic comments on the economy, with the result that a few sentences could spawn literally pages of analysis designed to “explain” the possible contents of Greenspan’s comments. Most of that analysis was incorrect. Now, journalists and especially headline writers are attempting to apply the same techniques to Ben Bernanke’s comments. The most widely quoted sentence contained in a scholarly paper he delivered …
Yesterday, President Obama announced his intention to nominate Ben Bernanke to a second four-year term as Chairman of the Federal Reserve Board. Bernanke’s tenure coincided with the most chaotic and painful period in modern financial history. Bernanke has overseen a previously unimagined expansion in the range of Fed programs, and he played an important part in the nearly unprecedented expansion of the role of the government that has taken place over the past year. Bernanke’s reappointment must now be confirmed by the Senate. Before endorsing a second term, members must …
