Judging Bernanke So Far

We have not had a chance to read the book and may not for another 3 weeks. However, we have been diligently reading the comments and interviews flowing across the media networks. This morning we pick this up from Cnn Money.

How would you judge chairman Ben Bernanke’s response so far?

I think it’s been a very sensible one, because the board is confronted with something I was not confronted with, namely, evidence of finally coming out of this disinflationary trend. Cost pressures are beginning to build around the world. This suggests that, longer term, the Fed’s going to have to be tighter. It means that stock prices are going to have some difficulty moving forward. Shorter term, clearly, it’s got problems with very significant credit disruptions and turmoil. [In my tenure] we had a relatively easy task in lowering rates without concern about triggering inflation. I regret that that is no longer the case. (Cnn Article)

Go back and read the post on Bernankes speech in Germany, if you have not done so and check out some of our comments!!!!! It is a must, if you are a long term investor.