Bernanke: The Fed Has No Reason To Raise Interest Rates.

Bernanke, the former Federal Reserve Chairman, told the media on Monday (October 5th) that he did not think the Fed policymakers had reason to rush to raise interest rates at Ben now. (Bernanke)

When the Fed considers the first rate hike in 9 years, Bernanke believes that monetary policy will not be easy at the moment, because inflation is still too low, and signs of full employment are only beginning to emerge.

He pointed out that inflation has reached 2% of the Federal Reserve's target, and monetary easing has become possible, but it has not yet been achieved.

He also criticized the Fed for changing its target inflation rate in order to raise interest rates.

He also pointed out that when the unemployment rate was 2012 as a guide to raising interest rates, when the unemployment rate reached at least 6.5%, the Federal Reserve only considered tightening measures. However, the Fed did not say that 6.5% would take the measure.

Bernanke refused to comment further on the decision of the current Federal Reserve Chairman Yellen not to raise interest rates at the September meeting.

He believes that not raising interest rates is a difficult choice. Last Friday (October 2nd) released the weak employment report of the United States last month on the impact of interest rate increase is negative.

Discussions on Wall Street have turned to the possibility of raising interest rates at the next meeting.

The next meeting may be held on 27-28 October, or in the 12 month.

But the futures market has basically ruled out the possibility of raising interest rates this month. It is considered that the possibility of raising interest rates in December is only 30%.

Under the CME fed monitoring tool, which monitors daily market interest rates on the Fed, the Fed is likely to increase interest rates next year.

Bernanke pointed out that slow productivity growth has dragged the economy down, and the US economy has been too dependent on the Fed.

He said other policy makers need to speed up decision-making.

Bernanke also said that the low growth of the US economy was not a temporary release in the great depression. He noted that more capital investment was needed to promote economic growth.

He warned that in the long run, low inflation or no inflation are at risk.

If inflation is low to deflation, the risk is that ordinary interest rates will remain low.

He believes that where there is a recession, there should be no interest rate reduction measures.

He insisted that the Fed should not take interest rate measures, which would not make any sense.

Raising interest rates too early will kill the economy, which is of little help to the economy.

Bernanke was interviewed at the time when the Federal Reserve was facing challenges due to China's economic slowdown and its impact on the slowdown in the US economy.

He said that China's economic slowdown has been widely anticipated, because the Chinese government has shifted to a more consumer driven economy.

He said the open question is whether the slowdown in the economy is bigger than what people expect in economic pformation.

He believes that investors do not need to worry too much about the recent problems in China's stock market, because China's stock market has little to do with China's economy.

Economic growth around the world has slowed down, but the US economy has always performed better than other countries, which proves that the Federal Reserve's monetary policy has been correct since the financial crisis.

But no one can guarantee that the Fed will foresee the future bubble.

He believes that the Federal Reserve takes monetary easing measures because economic development needs a lot of policy support.

A better policy will be to better mix monetary, fiscal and other policies.

The Federal Reserve is the only institution that can work, so it has to do too much.

He said this is a moral hazard and the Federal Reserve has to try to reduce its windfall to shareholders of AIG.

When Bernanke was chairman of the Federal Reserve, the stock market and the property market surged to a new height. But before long, the two markets plummeted and he could not take measures to help the countries on the brink of financial collapse.

Tracking Bernanke's term of office in the Fed, from his predecessor Greenspan (Alan Greenspan) in the hands of the relay baton to him to relay baton to Yellen, during the tenure of the Dow Jones Industry

Up about 45%.

But from the depths of the great depression in the 2009 until the departure of Bernanke, blue chip stocks have more than doubled.

For monetary policy, the two task of the Federal Reserve is to check inflation and maximize employment.

Creating a good environment and promoting a stable financial system is

The third goal is to pursue rules and regulatory policies rather than monetary policies.

Bernanke, now an outstanding researcher at the Brookings Institution, left the fed in January 2014 after finishing his second term.

During his eight years as chairman of the Federal Reserve, he experienced 2008 years of financial crisis.

He is now a hedge fund company Citadel and a bond giant in the Pacific

Senior Consultant of the company.

He is now promoting his new book, the courage to act: The Memoirs of the crisis and its consequences.

In the book, he recalled that after the heavy blow of the financial crisis, there was no way to save Lehman brothers, even though the Fed had done its utmost to prevent its collapse.

He said that Lehman's weekend and subsequent failures were the worst things he had experienced during the presidency of the Federal Reserve.

On the contrary, he pointed out that the intervention of AIG was a very difficult decision.

But because Lehman is going to go bankrupt, it has to do so.

He pointed out that AIG had everything they needed to survive, but the insurer took a high interest rate and his share was taken away in the name of the taxpayer.

He believes that the Fed does things for AIG, not for thousands of companies that are bankrupt without any help.