10-29-2005, 11:19 AM
President Bush announced his noninee" Ben bernanke" to succeed Alan Greedspan as chairman of the Federal Reserve Bank
This position is the most important post in managing our economy more important than any party or president .
the interest rates continue to raise as a wages are stagnant the result is less and less poeple qualify to buy a home .
Will Ben Bernanke keep interest rates down as greenspan did as much as possible or will he take a differant approach and go for a more open idea that sets a specific inflation target ?
What do you all think .
From the new york times .
By MARK A. STEIN
Published October 29, 2005
BIG institutions, public and private, made news this week, starting with President Bush nominating a successor to Alan Greenspan to run the Federal Reserve, the central bank of the world's largest economy. The world's biggest retailer promised several changes to blunt criticism of the way it treats its employees and the environment. Several of the world's biggest oil companies reported huge profits amid the recent spike in prices for oil and for gasoline and other refined products.
THE BANKERS' BANKER To generally favorable reviews, Mr. Bush nominated one of his chief economic advisers, the former Princeton professor Ben S. Bernanke, to succeed Mr. Greenspan as chairman of the Federal Reserve. The Senate will be asked to confirm the choice before Mr. Greenspan retires in January.
Mr. Bernanke, who briefly served as a Fed governor before becoming chairman of the White House Council of Economic Advisers, promised to continue the anti-inflation policies of Mr. Greenspan, but not his Delphic style of guiding monetary policy. Instead, Mr. Bernanke has advocated a more open approach based on explicit rules, including the somewhat controversial idea of setting a specific inflation target.
The tone of his tenure will become apparent at the end of March, when he will lead his first meeting of the Federal Open Market Committee, the body that sets short-term interest rates. His goal will be to bring down inflation, now at its highest rate in more than a decade, without causing too much damage to the economy or the stock market.
Economists who know Mr. Bernanke said they believed he would avoid offering unsolicited advice to the president. But he may find it hard to avoid talking about the deficit, which could affect the value of the dollar, interest rates - and Mr. Bernanke's reputation.
WARNING SIGNS Falling prices and flat sales for existing homes last month provided further evidence that the housing boom was starting to cool. The number of new homes sold rose 2.1 percent last month after having tumbled 11.6 percent in August, but the rise was less than many economists had expected and the median sales price declined 5.4 percent.
That news came as another report said that consumer confidence fell this month amid higher energy costs and concern about a softening job market. Despite that concern, the number of people making their first unemployment insurance claims last month, 328,000, was below what economists had forecast.
Statistics on income and spending are scheduled to be released next week and may provide more information on where the economy is headed.
This position is the most important post in managing our economy more important than any party or president .
the interest rates continue to raise as a wages are stagnant the result is less and less poeple qualify to buy a home .
Will Ben Bernanke keep interest rates down as greenspan did as much as possible or will he take a differant approach and go for a more open idea that sets a specific inflation target ?
What do you all think .
From the new york times .
By MARK A. STEIN
Published October 29, 2005
BIG institutions, public and private, made news this week, starting with President Bush nominating a successor to Alan Greenspan to run the Federal Reserve, the central bank of the world's largest economy. The world's biggest retailer promised several changes to blunt criticism of the way it treats its employees and the environment. Several of the world's biggest oil companies reported huge profits amid the recent spike in prices for oil and for gasoline and other refined products.
THE BANKERS' BANKER To generally favorable reviews, Mr. Bush nominated one of his chief economic advisers, the former Princeton professor Ben S. Bernanke, to succeed Mr. Greenspan as chairman of the Federal Reserve. The Senate will be asked to confirm the choice before Mr. Greenspan retires in January.
Mr. Bernanke, who briefly served as a Fed governor before becoming chairman of the White House Council of Economic Advisers, promised to continue the anti-inflation policies of Mr. Greenspan, but not his Delphic style of guiding monetary policy. Instead, Mr. Bernanke has advocated a more open approach based on explicit rules, including the somewhat controversial idea of setting a specific inflation target.
The tone of his tenure will become apparent at the end of March, when he will lead his first meeting of the Federal Open Market Committee, the body that sets short-term interest rates. His goal will be to bring down inflation, now at its highest rate in more than a decade, without causing too much damage to the economy or the stock market.
Economists who know Mr. Bernanke said they believed he would avoid offering unsolicited advice to the president. But he may find it hard to avoid talking about the deficit, which could affect the value of the dollar, interest rates - and Mr. Bernanke's reputation.
WARNING SIGNS Falling prices and flat sales for existing homes last month provided further evidence that the housing boom was starting to cool. The number of new homes sold rose 2.1 percent last month after having tumbled 11.6 percent in August, but the rise was less than many economists had expected and the median sales price declined 5.4 percent.
That news came as another report said that consumer confidence fell this month amid higher energy costs and concern about a softening job market. Despite that concern, the number of people making their first unemployment insurance claims last month, 328,000, was below what economists had forecast.
Statistics on income and spending are scheduled to be released next week and may provide more information on where the economy is headed.