Will The Fed lose credibility to fight inflation now that Democrats have control of Congress?
*Bloomberg, by Rich Miller, November 9, 2006:
"Federal Reserve Chairman Ben S. Bernanke may find it harder to
establish an inflation target now that Democrats have control of
Rhode Island Senator Jack Reed, Massachusetts Representative Barney Frank and other Democrats prefer that the Fed focus on promoting growth as well as containing inflation. Some legislators advocate that the Fed adopt a target for employment as well as prices -- anathema to Bernanke and others at the central bank.
"The Democrats will give Bernanke a tougher time than the Republicans on inflation targets,'' said Tom Gallagher, a senior managing director at International Strategy & Investment Group in Washington. "Support is going to be harder to come by.''
Bernanke has argued that a target would help cement the Fed's credibility as an inflation-fighter and make it easier to manage the economy. If he's unable to press ahead, supporters say, those aims might be damaged."
*This information is solely a highlight of the opinion of a third-party publication and is incomplete. Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.
Let us help you:
available now at