Chairman Bernanke's Jackson Hole speech, delivered this morning, will be analyzed for days, if not weeks and months. Interpretations will also be conditioned by what President Obama says on September 5 and the outcome of what is now a two-day (as opposed to the original one-day) FOMC meeting on September 20 - 21 (which presumably will now be accompanied by a press conference).
Unlike 12 months ago, this year's speech does not pull a rabbit out of the policy hat. Instead, it suggests that, in analyzing the situation and drawing policy implications, Mr. Bernanke has taken another step toward recognizing the extent of the structural headwinds facing the U.S. economy. In the process, he differentiates between the cyclical and structural/secular role of monetary policy, noting that the Fed is less effective when it comes to the latter role.
While keeping the door open for additional Fed measures, Mr. Bernanke spends quite a bit of time pointing to other policy areas, and appropriately so. As discussed in my FT op-ed of yesterday, he reminds us that the Fed alone cannot carry such a heavy policy burden, and he mentions a list of needed reforms (in housing, public finances (tax and spending), the labour market, the financial sector, education, competitiveness, etc...).
Mr. Bernanke also states that "most of the economic policies that support robust economic growth in the long run are outside the province of the central bank." And he refers not just to the content of policies but also to the process/quality of policy making (noting that "the country would be well served by a better process for making fiscal decisions.")
In sum, today's remarks rightly shift some of the spotlight away from the Fed and towards other decision makers and institutions in Washington, DC. And with general policy uncertainties continuing to hang over markets, the American part of this issue now moves to President Obama's September 5 speech with a twin hope: that the president is able to propose appropriately ambitious initiatives aimed at restoring growth and employment creation, and that Congress returns from its vacation willing and able to follow with a constructive and collaborative approach.
This is what should happen if America is to regain its domestic and global economic footing. I certainly hope that it does but am worried about what is more likely to happen -- namely, another round of damaging policy dithering and political bickering.
Bernanke Speech Unlikely To Unveil Major Program, Economists Say
Bernanke Offers No New Steps To Jumpstart Economy Amid Bleak ...
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Why doesn't he just say what everyone knows is true: He means the tea party republican
The President should recommend that the Justice Department hire Elliot Spitzer to head a squad of untouchabl
The President should ask legislator
Make these changes over a weekend like $trillions went to banks.
Problems solved!
Why should anybody invest their hard earned cash when they get nothing in return.
The biggest joke I saw was at a Chase bank. It was offering a ,50 % vield on a $10k CD for 2 yrs. Why such a low rate of return.? That is the rate set by Bernanke and that is what the banks pay. In the mean time the bank chips away at the depositors money with high interest service fees.
Chase and the other big banks are not going to invest in crap and why should they, when their making billions stealing money with their ridiculous service fees.
Its up to the treasury and the BS fed reserve board to give the depositors more bang for their bucks by offering higher rate of return on their money. The banks won't like this and most likely have to compete with govt rates. This might cause more and more of the hard working lower and middle class workers to invest more of their money in CD's, T-notes , T-Bills and bonds which means more money to invest in creating jobs
You don't want to because it is risky.
It isn't his job to help you make money. that is your job.
plan. Of course, he will hope to double down on the components of his original stimulus
which has already failed miserably. But sadly, he has no intention of doing the one thing that
would free up the economy to grow - suspend Obamacare, Dodd/Frank
the recession has ended. Objectivel
"accomplis
economy would have recovered long ago. The fact that the downturn was so severe, the rebound
should have been equally as strong. Hopefully, no one will be fooled by yet another
incarnatio
and his pretense of concern is only for reelection
The Hole Jackson Hole thing is dubious value...a financial boon-doggl
We are capable of fixing these issues (we have the money), we simply choose not to...
There is a better way.....WWW.THEVEN
What you equate with excellence is what most identify as self congratula
Oh, and how, within the limited scope of reference you take, the US economy, can you assert that the highest quality is delivered, unless it is the result of regulation ensuring quality?
They want to end the EPA. They want to end Medicare and give you a voucher. They want to end Social Security and give you a 201K. They talk about the deficit but have plans for more tax cuts for the top 2% and large corporatio
Wake up America and stop drinking the FAUX NOISE kool aide. The Republican policies are killing the middle class.
The reality is that the Fed does not serve the interests of the United States, certainly not the population
The Implementa
Corrupted political leadership must be struck with the true reality, its horrific implicatio
Those in positions of power tend to be those who SOUGHT those positions of power. So it is natural and expected that those in positions of power, when confronted with a challenge or a need, will act as though they can/should solve that situation. Finally, Chairman Bernanke has very wisely stepped back from that natural inclinatio
It's no mystery what needs to be done to restore America to a condition of sustainabl