Let us take just a moment to distill the current policy view, backstage at the Fed. As we do so, it’s best to tune out the siren song of complexity.
Very, very few staffers (various districts) seriously think the present program will make much difference for the economy as a whole. Those Fed officials who claim otherwise are performing the combined feat of whistling in the dark in their cheer-leading outfit, twirling their pom poms.
There is no “party line” any longer, as in the Greenspan days; we have wayward children to be sure. But, it is still Bernanke’s view that is key. Bernanke is greatly concerned with lack of progress in Washington and so is acting as a surrogate. This is what we meant in an earlier sketch - the Fed is attempting to make fiscal policy.
Many of us understand that it is in the best interest of our Country if Bernanke were to sit on its hands. But Bernanke, although highly uncertain his programs will amount to much is very keen to continue with his cheer leading. He figures it’s about all he’s got.
Robert Craven
Very, very few staffers (various districts) seriously think the present program will make much difference for the economy as a whole. Those Fed officials who claim otherwise are performing the combined feat of whistling in the dark in their cheer-leading outfit, twirling their pom poms.
There is no “party line” any longer, as in the Greenspan days; we have wayward children to be sure. But, it is still Bernanke’s view that is key. Bernanke is greatly concerned with lack of progress in Washington and so is acting as a surrogate. This is what we meant in an earlier sketch - the Fed is attempting to make fiscal policy.
Many of us understand that it is in the best interest of our Country if Bernanke were to sit on its hands. But Bernanke, although highly uncertain his programs will amount to much is very keen to continue with his cheer leading. He figures it’s about all he’s got.
Robert Craven
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