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Fed 'Will Get on Top of This,' Says Bernanke Mentor

Posted Mar 18, 08 10:35 AM CDT in Business    Most Covered

(Newser) – Ben Bernanke has the savvy to inject enough liquidity into the US economy to push it through the current credit crisis, says a leading economist who advised the Fed chief's MIT doctoral thesis. “The Fed will get on top of this,” said Stanley Fischer, ahead of this afternoon's meeting in which the board was expected to announce a rate cut of up to 1%.

Fischer, a top IMF official during the Asian and Russian financial upheaval of the 1990s, acknowledged that the global impact of the current US crisis "far exceeds the things I've seen previously." Nevertheless, he said, "Ben Bernanke is an excellent economist" who will spur growth while avoiding the double-digit inflation that the bank faced in the early '80s.

Source Bloomberg

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Federal Reserve Chairman Ben Bernanke testifies on Capitol Hill in Washington, Wednesday, Feb. 27, 2008.   (AP Photo/J. Scott Applewhite)
President Bush meets with the his Working Group on Financial Markets, yesterday, (L to R), Treasury Secretary Henry Paulson, the president, and Fed Chairman Ben Bernanke.   (AP Photo/Gerald Herbert)
Federal Reserve Chairman Ben Bernanke delivers the Fed's Monetary Policy Report, Thursday, Feb. 28, 2008, during an appearance before the Senate Banking Committee.   (AP Photo/Dennis Cook)
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Federal Reserve  • credit crisis  • Ben Bernanke  • inflation  • interest rate cut  • MIT  • International Monetary Fund  • IMF


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