Fed Meets to Map Out Years’ Worth of Monetary Policy
Under Chairman Bernanke, the central bank has pursued a goal of transparency that has communicated its policy intentions more clearly to investors– a departure from the traditionally secretive business of monetary policy. A job typically suitable for introverts, Bernanke has given many television interviews and participated in the Fed’s first press conference in its history, which means that his successor will not only have to be able to set monetary policy but also to explain it to the public.
The names of some of the potential candidates have started to emerge, such as Larry Summers and Janet Yellen. President Obama appointed Yellen to her current position as vice chair, and she is likely to top the candidate list because of her experience working many years for the central bank, ensuring a smooth transition. Whomever Obama appoints, we should expect to see the slow confirmation process start sometime around May next year.
Bernanke, initially appointed by President George W. Bush, was nominated for a second term by Obama in 2009. During Bernanke’s second term, the Fed has pursued unconventional efforts to spur growth, prompting criticism from many Republicans. With Obama staying in the White House for another four years, he might choose to provide the continuity that markets find so reassuring, opening the door for a potential third term for Bernanke.
The close relationship between federal government and central bank has seen the Fed’s Treasury bond holdings expand to almost $3 trillion and its holdings of mortgage-backed securities to $884 billion. A change in this relationship is unlikely to occur anytime soon, as both government and Fed officials are still pushing for a substantial improvement in the labor market. The announcement following the meeting this week might just confirm that.
We can “plan out” years worth of “bail outs” and “easing” but we cant have a budget?
Tell me again why ANY of these crooks are in DC?
If Bernanke (Bush appointee) leaves does it mean Obama owns everything that happens going forward?
The FED is a criminal enterprise to benefit banking houses and the political class at the expense of the taxpayer. Its transparency is a head fake itself. Ask any 100 people on the street, no make that any 1000, check that any 100,000 and see who can define even what it does. Tell them that it buys bonds that the Treasury dept issues and also prints money and they will stare saucer-eyed. WTF?
Nothing the FED does now will stimulate the economy, quite the opposite – the insane levels of government spending financed by the FED now pulls down the economy at every level. So much for the demand side Keynesian hookah smoke. Next comes the interest due on all this debt IF the economy ever does grow. Of course, that will mean more printing. Guess who loses purchasing power.
It is a put-up job and Harry Reid now has a bill to ensure the $700 trillion + in notional derivatives held by the banks will be paid for by the taxpayer when this house of cards collapses. These boys are covering their own. Like any criminal enterprise.
Meanwhile we fight over the scraps (e.g. see: union thugs attack AFP tent).
” a central bank is ” t jefferson . check it out .
Quantitative Easing Benefits the Super Rich … And Harms The Little Guy and the American Economy Quantitatitve Easing Is Not “Liberal” Economics By Washington’s Blog Global Research, December 13, 2012
http://www.globalresearch.ca/quantitative-easing-benefits-the-super-rich-and-harms-the-little-guy-and-the-american-economy/5315470
This is insane. Quantative Easing is a recipe for hyper-inflation.