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 summa cum laude from Harvard University. He then went on to earn his Ph.D. in economics from the Massachusetts Institute of Technology, with a dissertation on the Great Depression—knowledge that has almost certainly informed his policy moves during the current economic downturn. Ben Bernanke’s bond buying program that has been in place for the last couple of years is starting to be wound back up. US sharemarkets have surged to new record highs on the back of that news, with further gains of around 1.5% just recently, which means that US stocks are up almost 7% in the last two weeks. At the same time, the US dollar has weakened and the yield on government bonds has fallen back, although they remain substantially higher than the yield of a few months ago as the better economic news has underscored a generally sluggish sentiment. It is strikingly clear that Bernanke is not going to make the same mistakes that knee-capped each mini-recovery that emerged during the 1930s Great Depression, when policy-makers prematurely tightened policy on several occasions when there were tentative signs that the economy was improving.
As an academic specialist of the Great Depression, Bernanke is aware that the US economy is still vulnerable to a
References: Coffey, L.T. (2009). Bernanke is TIME’s 2009 person of the year. Retrieved from http://www.msnbc.msn.com/id/34441681/ns/today-today_people/?GT1=43001 Magana, J.L. (2010). Senate confirms Bernanke for second term. Retrieved from http://www.msnbc.msn.com/id/35124892/ns/business-stocks_and_economy Paul, R. (2009). Ron Paul reacts to Bernanke as ‘Time’ person of the year. Retrieved from http://www.zimbio.com/Ben+Bernanke/articles/NsgiQEG0wyW/Important+News+Dec+17 Lp, G. (2007). Bernanke notes risks but holds to outlook; Fed Chief sees more factors that could slow growth; added subprime attention. Wall Street Journal, A2. Retrieved from library portal. Rajan, A. (2009). How successful has Ben Bernanke 's first term as Fed chairman been? The Independent, pg. 26. Retrieved from library portal. Bernanke, B.S. (2010). Fiscal Sustainability and Fiscal Rules Retrieved from http://www.federalreserve.gov/newsevents/speech/bernanke20101004a.htm Clipsandcomment.com (2009). Ben Bernanke Testimony on Economy and Federal Budget. Retrieved from http://www.clipsandcomment.com/2009/03/03/full-text-ben-bernanke-testimony-on-economy-and-federal-budget-march-3