Bernanke's Inflation Target May Encounter Democratic Opposition

BY

Federal Reserve Chairman Ben S. Bernanke may find it harder to establish an inflation target now that Democrats have control of Congress.

Democrats prefer that the Fed focus on promoting growth as well as containing inflation. Some legislators advocate that the Fed adopt a target for employment as well as prices -- anathema to Bernanke and others at the central bank.

The Democrats will give Bernanke a tougher time than the Republicans on inflation targets. Support is going to be harder to come by.''

Bernanke has argued that a target would help cement the Fed's credibility as an inflation-fighter and make it easier to manage the economy. If he's unable to press ahead, supporters say, those aims might be damaged.

Bernanke's idea already faced opposition within the Fed, and former officials said before the Nov. 7 election that adoption of an inflation target was likely to be a gradual process.

While Bernanke stated in his Senate confirmation hearing last year that the independent Fed can adopt a numerical target for inflation on its own, he's unlikely to proceed without at least the tacit support of key lawmakers. The 52-year-old chairman has said it's important to ``vet'' any such shift with the congressional committees that oversee the central bank.  That could be complicated by Democrats taking over the committees.

Under current law, the Fed has a mandate for both price stability and full employment.

Bernanke, picked by Republican President George W. Bush to succeed Alan Greenspan, has said that the adoption of an inflation target would bolster rather than hinder the Fed's ability to achieve both goals.

BY

美國九月份貿易赤字從八月的紀錄高位699億收窄至643億美元，主要由於油價下跌及海外經濟增長刺激美國貨的需求上升。

十二年來再次掌控國會多數席位的民主黨，不少黨員對於設立通脹目標表示質疑。曾為參議院銀行委員會成員的民主黨議員薩班斯早前為了這議題不斷質問伯南克，他認為伯南克只緊盯通脹方面，損及提倡經濟增長的士氣。

除了通脹問題之外，民主黨大獲全勝，掌控參議和眾議兩院，面對身為執政的共和黨，形成國會和政府對峙的局面。民主黨早前保證會再沿用「即收即付」的預算原則，分析員認為他們希望在財政赤字上留下良好記錄，或可限制政府支出，長線對美元和美債巿場甚有益處。

雷文

BY  在 2006-11-11 12:38 AM 發表:

美國九月份貿易赤字從八月的紀錄高位699億收窄至643億美元，主要由於油價下跌及海外經濟增長刺激美國貨的需求上升。

十二年來再次掌控國會多數席位的民主黨，不少黨員對於設立通脹目標表示質疑。曾為參議院銀行 ...

小布明年不知要不要自付交電費才可亮起耶誕節燈光呢，白宮有沒有燈飾真的重要嗎?反正都不是給國民觀賞!