Bernanke ’60 Minutes’ Interview
Ben Bernanke’s second interview ever.
He declares, “we are not printing money”, because money supply is not moving. (I laugh…)
Mr. Bernanke called the inflation fears “way overstated” and said he had 100% confidence he could act quickly enough to keep prices in check. “We’ve been very, very clear that we will not allow inflation to rise above 2% or less,” he said. “We could raise interest rates in 15 minutes if we have to. So, there really is no problem with raising rates, tightening monetary policy, slowing the economy, reducing inflation, at the appropriate time.”
I am troubled by his 100% over-confidence. Yes , the Fed could raise interest rate in 15 minutes, but will the Fed raise interest rate when the inflation passed 2% yet unemployment rate remained very high still?
This video interview will become an evidence of the Fed’s overconfidence in a few years time.