Bernanke says Fed acted too slowly on inflation
Former Fed chair argues forward guidance hampered Fed’s response to rising prices
Former US Federal Reserve chair Ben Bernanke offered rare criticism of the country’s central bank on May 16, saying policy-makers acted too slowly to curb inflation.
“Forward guidance, I think, overall, on the margin slowed the response of the Fed to the inflation problem last year,” said Bernanke. “In retrospect, yes, it was a mistake.”
Fed officials recently sought to defend their actions by arguing that forward guidance had helped generate an early response to inflation.
Governor
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