“Fed Chief Steps Back Into Political Matters” – AP
“The danger for Bernanke in politicizing the Fed, some economists and academics say, is that it makes it easier for Congress and the White House to pressure the Fed to make decisions that are politically popular but not good for the economy. “Bernanke should be fighting to maintain the Fed’s independence, rather than becoming more political,” said Kenneth Thomas, a lecturer in finance at the University of Pennsylvania’s Wharton School. For instance, one fear is that the Fed could come under pressure to hold interest rates at record lows for too long. While low interest rates are attractive to Americans because they make it cheaper to borrow money, they could also feed inflation and lead to speculative buying that would create bubbles in the prices of stocks and other assets.” Read more.
“Fed Chief Steps Back Into Political Matters”
Associated Press
Las Vegas Sun, March 7, 2011.
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