Network News

X My Profile
View More Activity

The Fed speaks

Thumbnail image for bernankefomc.JPGThe Fed -- or at least the Federal Open Market Committee -- has spoken, and the new regime will be the same as the old regime. That is to say, interest rates will remain unchanged, and the Fed will keep a big balance sheet. As this is the Fed, not doing less is interpreted as being willing to do more, and so the stock market jumped on news that our monetary policymakers are attuned to the weakening economy and apparently willing to step in if things get worse.

"What we’re left to wonder," writes Matt Yglesias, " is would this have gone down differently if Barack Obama’s three nominees were in place? And if it would have, how different would the midterms look? This is the biggest political story of the week by far, and you’ll see virtually no coverage of it."

Photo credit: Mahmood Fazal/Bloomber.

By Ezra Klein  |  August 10, 2010; 3:36 PM ET
 
Save & Share:  Send E-mail   Facebook   Twitter   Digg   Yahoo Buzz   Del.icio.us   StumbleUpon   Technorati   Google Buzz   Previous: Kids today
Next: House passes state aid bill -- but is it enough?

Comments

Isn't it great that the media runs cover for the GOP obstructionists?

Posted by: bdballard | August 10, 2010 5:08 PM | Report abuse

What I don't understand is why the Ben Bernanke running the Fed seems to not be the same Ben Bernanke that wrote all those great papers about what to do if you're running the Fed. Just look at his papers on ideas.repec.org and ask yourself, "How is this the same person?"

He spent his entire academic career explaining what should happen in this exact moment. Not only did it happen, he happened to be the guy in charge when it did! Yet, what does he do? Apparently look at his own papers and say, "Meh."

Posted by: nylund | August 10, 2010 6:59 PM | Report abuse

Post a Comment

We encourage users to analyze, comment on and even challenge washingtonpost.com's articles, blogs, reviews and multimedia features.

User reviews and comments that include profanity or personal attacks or other inappropriate comments or material will be removed from the site. Additionally, entries that are unsigned or contain "signatures" by someone other than the actual author will be removed. Finally, we will take steps to block users who violate any of our posting standards, terms of use or privacy policies or any other policies governing this site. Please review the full rules governing commentaries and discussions.




characters remaining

 
 
RSS Feed
Subscribe to The Post

© 2010 The Washington Post Company