KANSAS CITY, MO., July 26 The following are
highlights of comments by Federal Reserve Chairman Ben Bernanke
from a forum with television network PBS for its NewsHour
ON FED'S INDEPENDENCE:
"We are an agency of the government, but within the
government, we need to have some independence from Congress
and the administration...When a central banks makes monetary
policy without interference, you get low inflation and good
growth. We're very very sensitive to that issue. Studies have
shown that political influence does not lead to good policy."
"I'm answerable the American people."
"Our independence has to be won every day, if you will, and
we have to show we are producing good results and doing so
without intervention or interference from other political
ON NEED TO FIND A WAY TO ALLOW FIRMS TO FAIL:
"We need to have a law, a set of laws, that allow the
government to come in, and systematically and in a transparent
way, wind down a failing, financial behemoth, to use a word
that was used before so that it doesn't create damage
throughout the system."
ON FED'S DETERMINATION ON ECONOMY:
"I was not going to be the Federal Reserve Chairman who
presided over the Second Great Depression."
"The Federal Reserve has been putting the pedal to the
metal. We're doing everything we can to support the economy. We
hope that will get us going some time next year."
ON FISCAL STIMULUS:
"It may or may not succeed, but I think we should give it
ON LEHMAN BROTHERS FAILURE:
"We did not make a conscious decision to let Lehman fail,
not because we thought it was deserving, but because we knew
what the consequences were."
(Washington newsroom 202-898-8310)