Assessment: That from the Federal Reserve Chairman who began massive printing money in the 2008-9 financial crisis …
- Former Fed Chairman Ben Bernanke said the central bank erred in waiting to address inflation.
- “One of the reasons was that they wanted not to shock the market,” he told CNBC’s Andrew Ross Sorkin.
- Bernanke spoke a day ahead of his latest book release, which addresses Fed policy moves during the 21st century.
Former Federal Reserve Chairman Ben Bernanke said the central bank erred in waiting to address an inflation problem that has turned into the worst episode since the early 1980s.
Bernanke, who guided the Fed through the financial crisis that exploded in 2008 and presided over unprecedented monetary policy expansion, told CNBC that the issue of when action should have been taken to tame inflation is “complicated.”
“For the LORD your God will bless you just as He promised you; you shall lend to many nations, but you shall not borrow; you shall reign over many nations, but they shall not reign over you.’ Deut. 15:6
“The question is why did they delay that. … Why did they delay their response? I think in retrospect, yes, it was a mistake,” he told CNBC’s Andrew Ross Sorkin in an interview that aired during Monday’s “Squawk Box” show. “And I think they agree it was a mistake.”
Like the Bernanke Fed, the Jerome Powell-led central bank was called on to take aggressive action when the Covid pandemic hit in March 2020. Much of the response was patterned after the financial crisis moves, but to an even larger degree.
It kept that historically loose policy in place well after the economy recovered from the crisis.
Read More @ CNBC HERE