March 1, 2007

MORE BEN, LESS AL:

Bernanke's response to sell-off wins kudos: The Fed chairman's calmness before a House panel is seen as helping to stabilize markets (Joel Havemann, March 1, 2007, LA Times)

With his message to the markets not to panic, Federal Reserve Chairman Ben S. Bernanke in effect signaled Wednesday that the central bank would again stand ready to try to head off any major financial crisis, analysts say.

Bernanke told the House Budget Committee the day after Tuesday's global stock sell-off that the economy was in good shape and that the Fed was monitoring the markets. Stock market operations "seem to be working well," he said, adding that "there's a reasonable possibility that we'll see some strengthening of the economy sometime in the middle of the year."

Analysts saw his words and calm body language as an apparent signal that the Fed would be ready to provide cash or other support in case Tuesday's plunge escalated into a meltdown that threatened the global financial system. That would continue a practice under Bernanke's predecessor, Alan Greenspan.


And like Mr. Greenspan he's flirting with stalling out the economy by fighting non-existent inflation.

Posted by Orrin Judd at March 1, 2007 3:47 PM
Comments

Greenspan trying to get the heat off his wife and her connection with the Libby trial? Maybe there's still room to hope for an acquital.

Posted by: erp at March 2, 2007 8:04 AM
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