The Fed Makes History

Author
John H. Makin
Content Type
Policy Brief
Institution
American Enterprise Institute for Public Policy Research
Abstract
On December 16, 2008, Federal Reserve chairman Ben Bernanke exercised decisive leadership at a watershed meeting of the Federal Open Market Committee (FOMC). In its official statement after the meeting, the committee pledged to “employ all available tools to promote the resumption of sustainable economic growth and to preserve price stability.” The pledge to preserve price stability was not a commitment to fight inflation, as is typical, but a highly unusual commitment to fight deflation.
Topic
Economics, Markets, Political Economy
Political Geography
United States