Bernanke says the Fed’s slow response to inflation ‘was a mistake’

  • Former Fed Chairman Ben Bernanke said the central bank erred in waiting to address inflation.
  • “One of the reasons was that they wanted not to shock the market,” he told CNBC’s Andrew Ross Sorkin.
  • Bernanke spoke a day ahead of his latest book release, which addresses Fed policy moves during the 21st century.

Former Federal Reserve Chairman Ben Bernanke said the central bank erred in waiting to address an inflation problem that has turned into the worst episode since the early 1980s.

Bernanke, who guided the Fed through the financial crisis that exploded in 2008 and presided over unprecedented monetary policy expansion, told CNBC that the issue of when action should have been taken to tame inflation is “complicated.”

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“The question is why did they delay that. … Why did they delay their response? I think in retrospect, yes, it was a mistake,” he told CNBC’s Andrew Ross Sorkin in an interview that aired during Monday’s “Squawk Box” show. “And I think they agree it was a mistake.”

www.cnbc.com/2022/05/16/bernanke-says-the-feds-slow-response-to-inflation-was-a-mistake.html

 

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