Federal Reserve System Essay

1511 Words Sep 4th, 2013 7 Pages
money and banking | Federal Reserve System | FIN 402 Module 2 Case | | Derrick Smith | 7/23/2013 |

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ABSTRACT
Ben Bernanke was a key player in U.S. economic policy well before the Great Recession, and during that time seems to have achieved almost mythical status. The prolonged economic crisis has kept him front and center in the news, with regular appearances on Capitol Hill and increasingly heated rhetoric from detractors. As Federal Reserve chairman, Bernanke maintains as he attempts to steer the nation onto a steadier economic course. Federal Reserve Chairman Ben Bernanke is, by all accounts, a man of formidable intelligence. He scored 1590 on his SATs, taught himself calculus in high school, and graduated
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Suffice to say, if the stock market retains its current bullish tone, and more importantly if the hard economic data continues to confirm the fact that the economy is lifting to a trajectory of 3% GDP growth, the Fed will scale back its bond-buying program as a first step to normalizing monetary policy. Policy will still be accommodative, but a little less so. All of which shows that Bernanke is negotiating the Fed’s way through what will inevitably be a tricky transition from what was, and for the moment still is, the easiest setting for monetary policy the US has ever seen. The economy and markets may not like it when some of the super stimulus is withdrawn, and Bernanke knows this. But if he can take his time to adjust policy to a more normal setting and over that time the economy can build some further self-generating and self-sustaining economic growth, it will be a job well done.
Ben Bernanke’s second term as chairman of the US Federal Reserve ends at the end of January 2014. Speculation has begun about whether President Obama leans toward reappointing him and whether Ben Bernanke would accept reappointment. At his March 20 press conference, Bernanke said he had spoken to Obama “a bit” about his own future without directly addressing the question of whether he would be willing to serve a third term if asked. But he emphasized that he did not see himself as indispensable, saying “I don’t

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