Wednesday, July 16, 2008

Ben Bernanke: Is His Open Door Policy Good, Or Is It Too Open??


Fed Chairman and Dillon native Ben Bernanke has finally come out of the shadows of his predecessor, Alan Greenspan. Where Greenspan was a firm supporter of dropping interest rates to encourage growth, Bernanke has been a bit more reserved with his moves. It has given Bernanke his first nickname - Gentle Ben.
Part of the changes as well has been his willingness to meet with various leaders in Congress. Where getting a meeting with Greenspan was like Moses coming down from the mountain, Bernanke can often be seen having lunch with a Senator or Congressman. Here is my question: Is this a good thing?
I have reservations about an impartial, non-political position like the Fed Chairman chatting about policy with politicians. I can almost guarantee that most politicians know little to nothing about fiscal policy. The Fed Chairman should be like the mad scientist, stuck in his laboratory all day and night, right? Maybe not.
I suppose it's okay to sit down with Congress once in a while, as long as you don't listen to them. Deep down, Congress can only damage whatever they touch, and Bernanke may be better off ordering in lunch every day...
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1 comment:

Mike Reino said...

Guess no one cares about Gentle Ben..