Bernanke Looks Impotent as Fed's Fixes Fail

Economic woes may be beyond cure by monetary medicine
By Jim O'Neill,  Newser User
Posted Mar 17, 2008 11:11 AM CDT
Federal Reserve Chairman Ben Bernanke pauses during his appearance on Capitol Hill in Washington, Wednesday, Feb. 27, 2008, before the House Financial Services Committee hearing on the latest measures...   (AP Photo/J. Scott Applewhite)
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(Newser) – Ben Bernanke has employed virtually every tool in the Federal Reserve's kit to calm markets panicked by the credit crisis, but hasn't scored any more than temporary rallies, Bloomberg reports in a look at the markets' fading faith in the Fed chief—and the Fed itself. "The Fed has been playing the equivalent of Whac-A-Mole,'' says a former Fed vice chairman.

Markets continue to fall, the dollar’s value to shrink, and the housing and credit markets to deteriorate, leading some experts to say a turnaround is beyond the Fed’s reach. While Fed officials say their actions have helped, critics say the central bank has simply delayed an inevitable recession.