Over the the weekend at a monetary policy conference, Ben Bernanke channeled the ghost of revered economist Milton Friedman, saying the Fed is doing what Friedman would have done. In addition, he talked up the Fed as the defender of the faith on inflation:
“I have rejected any notion that we are going to raise inflation to a super-normal level in order to have effects on the economy,” Bernanke said. “Our credibility must be maintained,” and “it’s critical for us to maintain inflation at an appropriate level,” he said.
Bernanke has been extremely aggressive in defending the Fed’s actions in the wake of the move to deploy QE2 last Wednesday.
A charge unanswered is a charge believed, the feeling seems to be at the top of the Fed.
