Is Ben Bernanke facing political pressure as Fed chair?

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The discussion centers on the Federal Reserve's monetary policy under Ben Bernanke, particularly regarding the implications of borrowing $500 billion on top of $1.7 trillion to stimulate demand. Participants argue that while the Fed aims to maintain a healthy yield curve to promote long-term economic growth, the approach of creating money rather than borrowing raises concerns about inflation and economic stability. The conversation highlights the complexities of the Fed's role in managing debt and its impact on the economy, emphasizing that the Fed's actions are not merely about controlling inflation but also about fostering economic momentum.

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  • #31
mheslep said:
How? Why? Bernanke doesn't have to win any elections.
Maybe slightly. But then the Fed has two mandates, not one, as Geitner mentioned in the quote. The current Fed dual charter may indeed be a mistake, but for the moment there it is. Even so I don't know how that runs counter to what Geitner said.

I was using the term politics in the more general sense -
Politics . . . . is a process by which groups of people make collective decisions. The term is generally applied to behavior within civil governments, but politics has been observed in other group interactions, including corporate, academic, and religious institutions. It consists of "social relations involving authority or power" . . . .
http://en.wikipedia.org/wiki/Politics

Authority, power, influence - folks in Washington, the Fed, various cities, corporations, . . . . are vying for power and influence . . . .

Fed politics and Washington politics clash.
 
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  • #32
WhoWee said:
My point was that the Fed is eyeball deep in politics. Bernanke is all over the planet giving speeches.
And he has a beard and where's dark suits. Of course he gives speeches. He does not, however, give baby kissing vote for me speeches. He's the chairman of the US central bank, and he should be out there explaining his actions everyday.

I guess you didn't get a chance to open either of these links I posted?

http://business.timesonline.co.uk/tol/business/economics/article7000881.ece
"Obama urges Senate to stand by Ben Bernanke"
Because you made the point about Bush - and
Which means the President is political, not Bernanke. This is also basically what every President says, all the time - stay with the Fed chair do give the markets confidence in some stability.

http://www.moneynews.com/StreetTalk/ChinaUrgesBernanketoStopthePrintingPresses/2010/10/28/id/375187
"China Urges Bernanke: Stop Printing Dollars!"
then you made the point the entire world having a problem with China manipulating currency - who in turn has a problem with the US actions (that will also devalue currency).
Many countries have a problem with QE. So what, in this context about politics? They don't get a vote.

What is your point - other than to find fault with my post?
That Bernanke is relatively isolated from politics as compared to, a politician, and should stay that way as Geitner suggests. You don't like the Fed actions, I get it. I'm not sure I do either wrt QE, and I think I'd like to see the Fed charter changed. That doesn't mean we should all go and conflate that opinion with some conspiracy theory about Bernanke's politics.
 

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