WASHINGTON — They likened him to a traitor. They hinted darkly that he might suffer violence because of his actions in office. They said they wanted him fired.
But when Fed Chairman Ben Bernanke was invited to respond to the Republican presidential candidates who have made him a whipping boy, he turned the other bearded cheek.
“You haven’t had a very good time in all the Republican presidential debates,” Greg Robb of MarketWatch told the slight and scholarly chairman at Wednesday afternoon’s news conference at the Federal Reserve.
Bernanke smiled and nodded his agreement. “I’m not going to get involved in political rhetoric,” he said. “I have a job to do.”
In a sense, Bernanke didn’t need to rebut his critics; the facts already have. Earlier Wednesday, the Fed reported that expectations are inflation will remain between 1.4 percent and 1.8 percent for 2012 and between 1.5 percent and 2 percent through 2014. The exceptionally low inflation rate proves false the complaints about Bernanke’s aggressive — and successful — actions to avert an economic depression after the 2008 financial crisis.
Former candidate Rick Perry has been the worst of the critics, calling Bernanke’s behavior “almost treasonous” and declaring that Bernanke would face an “ugly” greeting in Texas if he injected more monetary stimulus into the economy. “It’s a travesty that young people in America are seeing their dollars devalued,” Perry complained.
Newt Gingrich called Bernanke “the most inflationary, dangerous and power-centered chairman of the Fed in the history of the Fed.” Ron Paul accused Bernanke of “inflating twice as fast as Greenspan.” Mitt Romney joined the others in saying he wouldn’t reappoint Bernanke, who was first appointed by President George W. Bush.
On Wednesday, Bernanke allowed himself just a passing reference to such critics. “The low level of inflation is a validation,” he said. “There were some who were very concerned that our balance-sheet policies and the like would lead to high inflation. There’s certainly no sign of that yet.”
He deserves credit for keeping his equanimity as the Republican candidates abuse him. And, at long last, he has some results to show for the work he has done. The Fed also announced Wednesday that it sees the economy growing at a rate of 2.8 percent to 3.2 percent next year and 3.3 percent to 4 percent the following year. Unemployment is forecast to be between 8.2 percent and 8.5 percent late this year, dropping to between 6.7 percent and 7.6 percent by the end of 2014.
Consumer sentiment, job growth and industrial production have all been improving. And the results of some of Bernanke’s most controversial policies, such as the enormous purchases of securities, have disproved the critics. “I’ve been pretty satisfied,” Bernanke said Wednesday in response to a question from The Washington Post’s Zachary Goldfarb, “that purchases do seem to have the desired effects on financial conditions.”
That the nation avoided an economic depression is due in no small part to the chairman, whose academic specialty is in the history of depressions. At a time when President Obama and lawmakers have squabbled themselves to irrelevance, Bernanke’s Fed has been a model of good government: apolitical, efficient, brutally effective -- and transparent.
The news conference itself was an example of Bernanke’s attempt to demystify the central bank: He took his place at a carved wooden desk atop an aluminum platform and, after reading a prepared statement full of jargon (“the level of maximum employment is not immutable”), he fielded reporters’ questions for nearly an hour in a surprisingly blunt manner.
“There are some positive signs, no doubt,” he told CNBC’s Steve Liesman, but “I don’t think we’re ready to declare that we’ve entered a new, stronger phase.”
“It’s a pretty good guess that we will be keeping rates low for some time from now,” he advised The Wall Street Journal’s Jon Hilsenrath.
“Expanding the balance sheet” — the acquisition by the Fed of more assets, which infuriates conservatives — “certainly remains an option,” he said to Mark Felsenthal of Reuters.
If inflation remains low, “I think there would be a very strong case,” he told Goldfarb, “for finding different additional tools for expansion, for expansionary policies, to support the economy.”
Paul and others would abolish the Fed because of such actions. But it’s reassuring that Bernanke is on the job and proving them foolish. For Republican presidential candidates, it’s worse than wrong to take aim at the one public servant who has done more than any other to keep the nation out of depression. It’s almost treasonous.



Comments (13)
Add comment"ALMOST" treasonous?
Hardly. There's nothing "ALMOST" about the actions of the current crop of Republican presidential candidates -- who've spent the last few months spreading lies and slanders about the President, Democrats in general and each other.
You'd think that at least one of them would put the insults aside and come up with a plan for rescuing the economy that doesn't involve colonizing the Moon so it can be made the 51st state.
Dang right, Mission...
because the current president sure doesn't have a clue.
Or as the Obama Administration refers to the moon...
as the 58th State, since the President has already informed us that we have 57 States. Sharp as a tack is the current President!!
truth is the farthest thing
that you will find in those debates.
they lie to each other and about each other.
they send ads to the airwaves that mock each other.
they use their wives and children to boost their standings,
then their fellow gop backers mock them. (dobson, focus on the family, rush)
I am really shocked they did not come up with someone
credible in a year that President Obama is vulnerable.
Instead they came up with a cast of characters who are destroying one another, making Obama's re-election easier.
I guess the better candidates realized that Obama would be tough to beat and they are saving themselves for after his 2nd term.
I do wish we had a VP in place who could run in 2016. Biden should not --and he has no interest from what I hear.
There is a story out about if Obama is reelected that the GOP will work on a way to impeach him. Seriously that has about as much a chance as the Democrats had of ousting GWB, but I guess they need to entertain themselves.
You guys seem to have no clue
You guys seem to have no clue except "do as I say, not as I do" politics. Have any of you been shopping lately??? Have you noticed the price of goods??? Not to mention wages staying the same or below. Not to mention 13.5% unemployment in the Brainerd Lakes area.? Gas at $3.24 a gallon, milk at $3.20 a gallon. Beef will be going through the roof soon. Nope,,, no inflation going on here. What a bunch of lackies. How far does your dollar go these days????? Wait till June when gas is $5 bucks a gallon. There will be a big sucking sound coming out of DC in Nov.
Newsweek article
by Andrew Sullivan of Jan. 23rd, 2012, is a must read for Democrats. GOPers read at your peril. LOL!
Andrew Sullivan
Sullivan, wrote an article identifying himself as a member of the gay "bear community".Sullivan was born in England. Sullivan is HIV-positive.Sullivan supported G. W. Bush in the 2000 election.Sullivan reluctantly decided to support John Kerry's presidential campaign.Sullivan has declared support for Republican congressman Ron Paul, whom he endorsed for the 2008 and 2012 Republican presidential nomination.
January 2009, in Forbes magazine, ranked Sullivan #19 on a list of "The 25 Most Influential Liberals In The U.S. Media", writing that "he clings unconvincingly to the 'conservative' label even after his fervent endorsement of Obama. His advocacy for gay marriage rights and his tendency to view virtually everything through a 'gay' prism puts him at odds with many on the right."In January 2010, Sullivan blogged "I too am sick of the Israelis [...]"
The guys is itelligent, but a crackpot and a flip flopper.
"Paul and others would
"Paul and others would abolish the Fed because of such actions. But it’s reassuring that Bernanke is on the job and proving them foolish. For Republican presidential candidates, it’s worse than wrong to take aim at the one public servant who has done more than any other to keep the nation out of depression. It’s almost treasonous."
FYI people, There is NOTHING Federal when it comes to the Federal Reserve. The FED is a PRIVATELY owned bank and it's about as federal as Federal Express. The above article is yet another "hit" piece against Ron Paul and is chocked full of misdirection and deliberate falsehoods.
If you do not get it yet, the FED is not federal and it has NO reserves. It prints money out of thin air, and it is NOT backed by anything. The FED is a scam. Benjamin "Shalom" Bernanke is NOT doing the US any favors in his position.
This video explains in lay terms for all to understand. I would hope for the future of America that you would watch it.
http://www.youtube.com/watch?v=ZPWH5TlbloU
as if you
ever cared aboout being fair.
as if you ever cared to be fair eywolf
..
Good Discussion
This is a good discussion. I think we need to, and eventually will, demand more moderate candidates. We will do that by electing the most moderate candidates available, thereby encouraging and rewarding moderate view points.
Partisan bickering has gotten us into this mess. We need to find people who can THINK independently, compromise and work together to find solutions. The polarized crew running the government now is driving us right into the ground. Both sides have something to offer and both sides are right some of the time. But in their quest for all or nothing, win at any cost, power, they've lost sight of the real goal; to do what is best for our country and our people.
Not all moderates are flip-floppers. They are just able to view and process information impartially and make the best decision based on the situation rather than on some party line ideal.
OkeyDokey suggests that...
"we need to, and eventually will, demand more moderate candidates." and "We need to find people who can THINK independently, compromise and work together to find solutions".
No doubt. Sooner or later, perhaps one of the Republican wannabes will come up with a plan for getting the economy out of the current recession. You know -- something besides just cutting the taxes of the rich, slashing Social Security and Medicare benefits and hoping for a miracle.