August 27th, 2010
10:39 AM ET
4 years ago

Bernanke: Fed has tools to get economy on track

Federal Reserve chairman Ben Bernanke said Friday that the Fed has tools to get the economy on track.
Federal Reserve chairman Ben Bernanke said Friday that the Fed has tools to get the economy on track.

New York (CNNMoney.com) - Federal Reserve chairman Ben Bernanke bluntly acknowledged that the U.S. economic recovery has lost considerable steam, but said the central bank has the necessary policy tools to support continued growth.

"The issue at this stage is not whether we have the tools to help support economic activity and guard against inflation," Bernanke said at the Fed annual symposium in Jackson Hole, Wyo. "We do."

Making his first public comments since the central bank announced it would buy additional long-term Treasurys to boost the recovery, Bernanke said that the pace of economic growth is "less vigorous" than expected, but the preconditions for a pickup in 2011 remain in place.

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Filed under: Economy • issues
soundoff (21 Responses)
  1. More change in November (but good change)

    They have the tools, but still managed to make things worse. Democratic tools at their best.

    August 27, 2010 10:44 am at 10:44 am |
  2. Randolph Carter, I'm no expert, but...

    Ben, you're just pi$$ing in the wind. What are you clowns going to do to adress 30 years of stagnant wages and outsourcing? Print more worthless money out of thin air? Yeah. that'll work. Have a nice day!

    August 27, 2010 10:44 am at 10:44 am |
  3. Chessnutz of Liverpool NY

    LOL, the Fed is one of the major causes of this recession. How do we know if they have any money at all? IMHO they are in just as much debt as the Government. But how would anyone know? This private bank does not have to show their books to anyone for oversight.
    That is why folks it is very important to audit the fed before the fed crisis ends this great nation.

    August 27, 2010 10:45 am at 10:45 am |
  4. bobby

    The Fed must go.

    August 27, 2010 10:58 am at 10:58 am |
  5. gt

    then get off your butts and do what it takes,,, ease credit and cut taxes...reduce spending ,,, easy,,,

    August 27, 2010 11:03 am at 11:03 am |
  6. rdepontb

    Dr. Bernanke,

    I must heartily agree with those that say the Fed interest rate must start to rise in order to motivate investors and lenders to take advantage of the low rates while they still can.

    Yes, it might seem contrarian at first glance, but upon careful consideration, the idea that rising interest rates mean that the "community" can no longer borrow money essentially for "free" and simply put it in even a marginally higher account, sit back and watch their own nest grow while the rest of the nation stagnates.

    Please-act now, and let's not look back.

    August 27, 2010 11:04 am at 11:04 am |
  7. jim

    Bernanke must think the American people are fools.The nation is bankrupt and all he can do is play games with words.

    August 27, 2010 11:09 am at 11:09 am |
  8. Right Leaning Independent

    If only these bumbling fools knew how to use the tools!!!!

    August 27, 2010 11:16 am at 11:16 am |
  9. water bearer

    So if Bernanke is right when he says "we have the tools to help support economic activity and guard against inflation," my advice to him would be START USING THEM! What are they waiting for??

    August 27, 2010 11:25 am at 11:25 am |
  10. mike

    The wealthy have too much money pooled. Unless they figure out how to tax them out of some of their wealth, the economy will continue to falter. There is only "X" amount of dollars, so if the middle-lower classes don't have cash-we will see no recovery.

    August 27, 2010 11:27 am at 11:27 am |
  11. Shibumi

    Inflation? This dill rod is worried about inflation? Deflation (see home values) is what he should be worried about.

    August 27, 2010 11:29 am at 11:29 am |
  12. GI Joe

    Is he another of those right wingers that will force people to suffer to give their thugs the political advantage? I think so.

    August 27, 2010 11:32 am at 11:32 am |
  13. Fair is Fair

    "Federal Reserve chairman Ben Bernanke bluntly acknowledged that the U.S. economic recovery has lost considerable steam"

    Apparently, the vice president hasn't received the memo.

    Hey Biden... how does it feel to be sent out to tout economic progress one day... and have the fed chairman come out and say something completely contradictory the very next day?

    What's that? It makes you feel like a dolt? Well, if the shoe fits... buffoon.

    August 27, 2010 11:38 am at 11:38 am |
  14. Limbaugh is a liberal

    Well, if his tools are the same as they were when he started in 2006, then no thanks. He'll cause yet another crash. Why did Obama even retain this Bush stooge?

    August 27, 2010 11:40 am at 11:40 am |
  15. sonny chapman

    Hang in there; a huge ship like the American Economy takes some time to change directions.

    August 27, 2010 11:41 am at 11:41 am |
  16. Dont forget to call Rush on openline friday

    The Fedral Reserve needs to be dismantled along with the Chamber of Commerce.They control both parties and will strangle the middleclass till they get you to work for fifty cents an hour.

    August 27, 2010 11:42 am at 11:42 am |
  17. Mark

    If the Fed has the tools to get the economy back on track, what the heck are they waiting for!

    August 27, 2010 11:47 am at 11:47 am |
  18. Marie MD

    And you are waiting for . . . . . . . . what? Keep a move on man!

    August 27, 2010 11:50 am at 11:50 am |
  19. barry

    How can this happen in "The Recovery Summer"? I am a Democrat but I agree Geithner and the rest have to go. Stop picking Professor types and get some people with real experience in these positions. This is serious people are getting desperate. I know it was a mess when President Obama took it over but it is worse by far now. I fear the President may be in over his head.

    August 27, 2010 11:51 am at 11:51 am |
  20. Jerry - Florida

    Oh yeah! That's why our country is in such good economic shape.

    You are almost as big a liar as your boss!

    August 27, 2010 12:10 pm at 12:10 pm |
  21. Bobber

    Why are these guys in office, they are wrong all the time and have only added to our long term problems, cnn might one day get this and do a story on all the wrong things they have done. But they my need more than on show to cover it all!

    August 27, 2010 12:12 pm at 12:12 pm |