Photo: Lisa Du, Business Insider with AP
Earlier this morning, Wall Street Journal reporter Jon Hilsenrath – whose pronouncements about the Federal Reserve are widely followed by market participants – reported on a letter from Federal Reserve chairman Ben Bernanke to House Representative Darrell Issa, an open critic of Fed policy.The letter, obtained by Business Insider, is dated Wednesday, August 22, the same day that dovish FOMC minutes – indicating that more monetary easing could be around the corner – were released.
Bernanke penned the letter as a response to 22 questions Issa posed to Bernanke about the effectiveness and appropriateness of the Fed’s current course of monetary policy.
The bottom line – Bernanke sees no problem with additional easing at this point. Bernanke begins his responses with the line, “There is scope for further action by the Federal Reserve to ease financial conditions and strengthen the recovery.”
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