What Does Ben Bernanke Think About The Economy?

In case you missed it, Ben Bernanke appeared on TV to answer questions from the Senate Banking Committee. Specifically, he defended the on-going asset purchases of $85 Billion/month the Federal Reserve is making in order to “support our recovery.” He reassured the general public that the benefits outweigh the potential risks.

This Bloomberg article does a great job of presenting each risk – including those highlighted on Funancials such as creating inflation and forming asset-bubbles.

If you’re a regular reader, you’re used to my gloomy outlook – so it should make you all giddy to see the man in charge of our economy say positive things. He says that “inflation is subdued” and there is little risk of asset-bubbles. In short, it looks like we’re well on our way to a full recovery.

Take It With A Grain Of Salt

On October 27, 2005, Mr. Bernanke told a congressional panel that there is no housing bubble. “The increase in home prices largely reflect strong economic fundamentals,” he said.

Yep- we should listen to that guy.

Tagged as: ben bernanke, economy, quantitative easing, sequester