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Yellen and Bernanke Go Separate Ways on Exit Strategy
You have to wonder how Janet Yellen feels about Ben Bernanke’s new blog. For much of the past year, the Federal Reserve Chairwoman has been mapping out a complex strategy for the mechanics of raising short-term interest rates. The effort has consumed large portions of Fed policy meetings and resulted in stacks of staff memos. On Wednesday, Mr. Bernanke suggested she adopt a new strategy. As part of her strategy, Ms. Yellen and her colleagues at the Fed have decided to stick with the central bank’s longstanding tradition of targeting a short-term interbank lending rate called the fed funds rate. Mr. Bernanke said ... (full story)
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