Comment: New Fed Chairman Needs To Act Decisively - Alan Greenspan May Have Left His Successor A Legacy Of Policy Credibility But With It Comes An Economy That Is Worse For Wear.

Banker, The, December, 2005

They call him the maestro but US Federal Reserve chairman Alan Greenspan's ultimate masterstroke may prove to be the timing of his retirement from the job, bequeathing his successor-designate Ben Bernanke an economy in dubious shape.

Mr Bernanke sailed through the US Senate confirmation hearing that was notable for his first official but widely anticipated comments in support of inflation targeting. Though, in the manner of a seasoned central banker, he quickly cooled expectations that he would act with undue haste.

It is something of a fiddly point, as the Fed already implicitly targets inflation, it just doesn't say what that target is. The hoopla over Mr Bernanke's comments was akin to finding an important piece of a puzzle; only the puzzle - how...

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