Through TheFLY's Eyes: Ben Bernanke
from Theflyonthewall.com












A Fed Chairman Willing To Act Proactively - Finally

With gold and copper prices soaring, oil remaining at high levels and some of Alan Greenspan's favorite tools to measure inflation at the upper end of the comfort zone, Fed Chairman Bernanke indicated that increasing rates from 1% to 5% might be enough.

This action suggests that the Fed is willing to act more proactively than any chairman to date. There has always been a recognition of some lag between Fed actions and when their actions actually impact the economy. Few Fed chairmen, however, have been willing to take the risk of halting the tightening cycle before at least some data has turned negative. To date, there are few data points suggesting much of a slowdown. Being in office for such a short time, this Fed chairman has demonstrated that he has some guts to act so proactively. We will see if he is correct.