Bernanke Calls Fed Independence Critical to Economy

The Wall Street Journal ^ | 02-03-10 | LUCA DI LEO

[GOP_Lady]

WASHINGTON — Protecting the U.S. central bank's independence is key for the economy, but at the same time, the Federal Reserve must become even more transparent, Chairman Ben Bernanke said Wednesday.

At a swearing-in ceremony marking the start of his second four-year term, Mr. Bernanke said the central bank's independence serves important public objectives.

"Critically, it allows the Federal Open Market Committee to make monetary policy in the longer-term economic interests of the American people, rather than in the service of short-term political imperatives," the Fed chief said.

While the U.S. economy's return to growth is encouraging, Mr. Bernanke said the country and the Fed still face "enormous" challenges.

Mr. Bernanke won confirmation to his new term last week with a 70-30 vote in the Senate, the highest level of opposition ever for a Fed chief, reflecting public anger over the Wall Street bailouts during the financial crisis.

The Fed chief's toughest challenge this year will be deciding when to raise interest rates as the economic recovery takes hold. Analysts expect the recovery will be strong enough for a rate increase around September or October, but that would be an unpopular move right before the November congressional elections.

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[FromLori]

The whole Fascist Cartel known as the FED should be abolished then Americans would be so much better off and obama wouldn’t be able to spend our grandchildren into slavery.

http://www.thedailybell.com/681/Nelson-Hultberg-The-Fed-is-a-Fascist-Cartel.html

[Notary Sojac]

It’s extremely important that the Fed be free of any scrutiny by the American people, so that it can be free to react obediently and with alacrity when Morgan Stanley and Goldman Sachs snap their fingers.

[ABQHispConservative]

I agree with the notion of an independent Federal Reserve, so that there is independence to conduct monetary policy. Unfortunately, Bernanke hasn’t exactly practiced what he is preaching.

[J Edgar]

I believe that 100%. The real question is who's economy. The Federal Reserve is a private bank (as declared by court rulings), and therefore, it's first fiduciary duty is to the (hidden) shareholders.

[J Edgar]

Absolutely, 100% true.

[Freedom_Is_Not_Free]

Fed independence is critical. It is a shame that has never actually happened.

Fed independence. Oxymoron.