Bernanke: Monetary policy ‘reaching its limits’

Monetary policy in the United States and other developed countries “is reaching its limits,” but the Federal Reserve has not yet run out of responses to a potential slowdown, former Fed Chairman Ben Bernanke wrote Friday.

In a blog post for the Brookings Institution, he argued a “balanced monetary-fiscal response” would better boost the economy than monetary tools alone. Bernanke assessed policy options for the Fed, saying negative interest rates hold “modest benefits” but are unlikely.

“I assess the probability that this tool will be used in the U.S. as quite low for the foreseeable future. Nevertheless, it would probably be worthwhile for the Fed to conduct further analysis of this option,” Bernanke wrote.

BERNANKE: MONETARY POLICY ‘REACHING ITS LIMITS’

In a blog post for the Brookings Institution, he argued a “balanced monetary-fiscal response” would better boost the economy than monetary tools alone. Bernanke assessed policy options for the Fed, saying negative interest rates hold “modest benefits” but are unlikely.

“I assess the probability that this tool will be used in the U.S. as quite low for the foreseeable future. Nevertheless, it would probably be worthwhile for the Fed to conduct further analysis of this option,” Bernanke wrote.

http://www.infowars.com/bernanke-monetary-policy-reaching-its-limits/

Bernanke: No hurry to hike

Former Fed Chairman Ben Bernanke told CNBC on Monday he sees no reason why central bank policymakers should rush to increase interest rates.

With the Fed considering a rate hike that would be the first in nine years, he said it’s not evident that monetary policy is too easy because inflation is so low and full employment is only starting to emerge.

“[The Fed] has a 2 percent inflation target. It needs to get inflation up to that target,” said Bernanke. “Easy money is justified by the need to get inflation up to the target.”

http://www.cnbc.com/2015/10/05/ben-bernanke-slow-productivity-growth-is-weighing-on-us-economy.html

BERNANKE: NO HURRY TO HIKE

 With the Fed considering a rate hike that would be the first in nine years, he said it’s not evident that monetary policy is too easy because inflation is so low and full employment is only starting to emerge.

“[The Fed] has a 2 percent inflation target. It needs to get inflation up to that target,” said Bernanke. “Easy money is justified by the need to get inflation up to the target.”

In a wide-ranging interview on “Squawk Box,” he also addressed criticism that the Fed keeps moving the goal posts for raising rates.

http://www.infowars.com/bernanke-no-hurry-to-hike/