Ben Bernanke spoke out against critics Friday morning during his keynote speech at a conference in Frankfurt. The Federal Reserve Chairman explained why the bond-buying program was a necessary step by the U.S. Central Bank, according to Reuters.
Bernanke Stands Up for Quantitative Easing
A program launched to improve the economy has snowballed into a controversial firestorm as critics, economists and politicians make predictions on the eventual outcome. Many experts are worried about the risk of hyperinflation associated with bond-buying programs of this scale. Other countries have been weighing in as well: The Finance Minister of Germany, Wolfgang Schaeuble, said the policy was “clueless.” Bernanke stood behind the decision.
“The best way to continue to deliver the strong economic fundamentals that underpin the value of the dollar, as well as to support the global recovery, is through policies that lead to a resumption of robust growth in a context of price stability in the United States,” Bernanke said at the European Central Bank conference.
Bernanke went on to say that these changes are necessary to bring much-needed balance not only to the U.S. economy but to the global market. Other Fed officials have begun to voice their opinions on the program. Two Fed officers endorsed the plan, one opposed it, and the fourth said it should not be the biggest factor in strengthening the recovery. The question at hand is whether or not the U.S. House of Representatives, now under Republican control, will be willing help create a fiscal program that will complement the Fed’s efforts at the request of Bernanke.
Excerpt From Bernanke’s Speech