Fed Chairman Ben Bernanke has been giving a four-part lecture series to the students at George Washington University.No one really expected it to be much more than a publicity stunt.
It is becoming more and more clear that these lectures are actually an aggressive defence of the Federal Reserve.
Given that Bernanke is a sitting Fed Chairman, it’s hard to imagine that he thought these lectures would be overlooked.
Art Cashin, UBS Financial Services director of floor operations agrees. From today’s Cashin’s Comments:
Bernanke At The Barricades – As you recall, last week Fed Chairman Ben Bernanke began his series of four lectures to students at George Washington University. In the first two, he dissed the idea of the gold standard and praised Paul Volcker for courageously wringing runaway inflation out of the U.S. economic system.
It is becoming apparent to many of us that Mr. Bernanke intends these lectures to be a spirited defence of the Fed itself. The critique of the gold standard was more a lecture on why you could not replace the flexible Fed with an inflexible “herd rule” process.
The defence of Volcker was directed at why you need the Fed to fight inflation. You needed us then and you need us now. Watch the two up-coming lectures and other speeches this week. Ben is on the offensive to save the Fed.