MICHAEL S. DERBY
The Wall Street Journal
November 8, 2010
- A d v e r t i s e m e n t
Federal Reserve Chairman Ben Bernanke countered those worried by the central bank’s decision to resume buying large amounts of Treasury securities, saying Saturday that the action is just effective, conventional monetary policy conducted with different tools.
“There is not really, in my mind, as much discontinuity as people think” in the path the Fed is currently following, the central bank chief said. “This sense out there, that quantitative easing or asset purchases, is some completely far removed, strange kind of thing and we have no idea what the hell is going to happen, and it’s just an unanticipated, unpredictable policy—quite the contrary. This is just monetary policy,” Mr. Bernanke said.
While he considers himself “very sympathetic” to those unnerved by what the Fed is doing now, in the current environment of tepid growth and ebbing price pressures, more aggressive policy “can be helpful” to improving conditions.