Ben Bernanke, the Federal Reserve Chairman is an interview-shy personality, but his views over the U. S recovery and the monetary policies are often reflected in the public statements he makes.
Over the economic growth, Bernanke is of the view that it is moving at a slower pace. Though, there is likelihood that output growth would get encouraged in the next year, but growth doesn’t seem to surpass the longer-term trend; signaling jobless rate will come down slowly.
For the question over the U. S. economy to be still in recovery, he responds that thought they have endured financial crisis, but it had left a deep impact on the economy that’s that man reason of the slowdown.
To fasten the pace of the economy, Bernanke said U. S. can adopt conventional policies such as bringing the overnight interest rate to zero. In order to provide assistance to the economic recovery, the Federal Open Market Committee is ready to offer additional accommodation.
Over the inflation, Bernanke expresses that the FOMC members have stipulated the inflation rate to be about 2%, which as recently is approximately 1%. Thus, inflation is in line or in fact lower than what FOMC has mandated.
The non-conventional measures like purchasing of securities or bonds have certain limitations. Also, expanding the balance sheet gives public wrong notion that the Fed is not able to make an exit from its accommodative policies at the right time.
He also expresses to address the problems being faced by foreclosures, by analyzing the firms' policies, procedures, and internal controls related to foreclosures.












