WallStForMainSt: Ben Bernanke Wrote 2010 Op-Ed That Asset Price Inflation Was Main Goal & $$$ Supply Growth Very Bad
Recently, formed Fed Chairman Ben Bernanke took time away from his very rigorous 7-8 figure per year speaking and consulting schedule to make public comments and applaud the Jerome Powell Fed about being dovish enough.
Fed has been successful at convincing markets it will be more dovish down the road, Bernanke says https://www.marketwatch.com/story/fed-has-been-successful-at-convincing-markets-it-will-be-more-dovish-down-the-road-bernanke-says-11609716790
However, many of the things Ben Bernanke warned about in his November 5th, 2010 Washington Post Op-Ed are coming to fruition!
Read the Op-Ed here:
What the Fed did and why: supporting the recovery and sustaining price stability https://www.washingtonpost.com/wp-dyn/content/article/2010/11/03/AR2010110307372.html or here: Aiding the Economy: What the Fed Did and Why https://www.federalreserve.gov/newsevents/other/o_bernanke20101105a.htm
Besides telling people that the Fed's main gain was to not allow deflation and force asset price inflation and asset prices higher (Wealth Effect), Bernanke promised in 2010 that the money supply (M1 and M2) would not rise. Otherwise, Bernanke warned, that it would be very inflationary.
And that, unfortunately, is exactly what is happening now.
Bernanke has even advocated for zero coupon bonds in Japan and negative interest rate policy (NIRP) here in the US as early as in a 2016 blog article on the Brookings Institute website.
What tools does the Fed have left? Part 1: Negative interest rates https://www.brookings.edu/blog/ben-bernanke/2016/03/18/what-tools-does-the-fed-have-left-part-1-negative-interest-rates
In January 2020 Bernanke again made public comments and interviews advocating for NIRP: Ben Bernanke says the Fed shouldn't rule out using negative interest rates https://www.cnbc.com/amp/2020/01/06/ben-bernanke-the-fed-shouldnt-rule-out-using-negative-interest-rates.html
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