Ben Bernanke — The mogul of the central bank has recently made political exclamations that seem to jeopardize economic stability. He recently made a statement, essentially exclaiming, that the United States government is liable for the economic recovery that we desperately need.
According to the Chairman, the US Congress and the White House share the responsibility to belabor the issue and somehow immediately come to a verdict to solve our ‘crisis.’ If it were not for the political clout that Mr. Bernanke harnesses, this would probably be a cursory voice blurb in the shared anxiety of all Americans.
So with that said, where does his statement gain credit, and in turn, lose base? Bernanke seems to be doing the right thing. It is true that our stagnant government will not pass a single bill without any controversy. It is a truly bipartisan move, ignoring our national political scam.
But inherent in his decision is the political nature. President Obama brings a conciliatory approach to the relationship between his branch and Congress and their ability to get anything passed. If Bernanke has any clear motives here, it is in support of Obama’s attempt to act as the mediator. Bernanke believes that the super-committee is not enough. The $1.5-trillion budget deficit reduction plan is not enough. He thinks we need to be more aggressive to get enough of what we need to get done.
Overall, Bernanke has been received well in the public eye, but not so well by the market. With expected QE3 plans since mid-summer left in the grey area, we look to a future where markets will not be so volatile, and all this political rhetoric will not dictate the market mood.