Paul Volcker, the imposing former Fed chief who felled the runaway inflation of the 1980s, chided the current chairman, Ben Bernanke, for toeing "the very edge" of the bank's legal authority in orchestrating the bailout last month of the beleaguered investment bank Bear Stearns.
"Out of perceived necessity, sweeping powers have been exercised in a manner that is neither natural nor comfortable for a central bank," Volcker said a speech on Tuesday to members of the Economic Club of New York.
His remarks came on the same day that Alan Greenspan, Bernanke's immediate predecessor as chairman, deflected criticism of his tenure, dismissing as "unfair" claims that his policies stoked an untenable housing bubble.
What is going on? Are our financial leaders capable of tackling the many issues facing the financial markets? Are they part of the problem?
More on https://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
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