U.S. News: Groundhog Day for Bernanke --- Once Again, Fed Chief to Focus on the Sluggish Economy in Jackson Hole Speech
JACKSON HOLE, Wyo. -- Federal Reserve Chairman Ben Bernanke wasn't expecting he would have to make another speech like the one he will deliver here Friday.</br></br>A few months ago, the Fed seemed to be on cruise control as the economy healed. Many officials at the central bank hoped they were done with launching complicated programs to spur a sluggish economy. But Mr. Bernanke and his colleagues, once again disappointed by slow growth and small employment gains this year, are formulating another dose of monetary stimulus to be considered at their next policy meeting in mid-September.</br></br>So when the chairman speaks Friday morning at the central bank's annual retreat here, he must once again address whether there is more the Fed can do to get the economy going and whether it is worth taking chances on controversial new programs. All along he has argued these efforts are worth it and appears likely to stick to that line in his speech.</br></br>Beyond big issues of the moment -- such as whether the Fed will launch a new bond-buying program -- a broader question looms in Jackson Hole about Mr. Bernanke's legacy. Long after his term as chairman ends in 17 months, will he be remembered as the Fed chief who did too little to combat high unemployment or the one who did too much and unleashed inflation and financial instability with the actions he took? Critics make both arguments.</br></br>How Mr. Bernanke acts now depends in part on which he sees as the stronger critique. As an academic before joining the Fed, Mr. Bernanke often criticized central bankers for dealing too passively with financial crises and economic malaise. As Fed chief, he has confronted many limitations to the policies he controls.