I am cautiously optimistic that our new "Big Ben" may interpret the reality of the "new economy"...high productivity allowing lower unemployment and interest rates without inflation pressure. Might I also hope for a temporary pause in increases at 4.5%?
An economy based on higher productivity and technological progress is nothing new in this country. We've had it for over 200 years now. It seems new because it's taking a few centuries for the federal government and the Federal Reserve to realize it. They are still not quite there.
As I heard, Bernanke spoke up about Greenspan's continuing interest rates and said there was a threat of recession more than a threat of inflation. I find that encouraging.
Since this was his first testimony, he couldn't very well criticize Greenspan, without upsetting Congress and the markets, but I could harly wait for Greenspan to be out and I think Bernanke will be much more reasonable.