In nod to end of his time at Fed, Bernanke discusses legacy

Eyeing the end of his tenure as chairman of the US Federal Reserve, Ben Bernanke on Wednesday described some of the things that he hopes to be remembered for when the time comes for him to step down, led by his championship of greater transparency in monetary policy.

Bernanke, who joined the Fed in 2002 and was originally named as its chief in 2006 by President George W. Bush, guided the US central bank during the worst financial crisis in about 80 years in 2007-2008.

Asked what he hoped his legacy would look like, Bernanke modestly noted that the Fed had changed dramatically over the last decade and emphasised his efforts to make it easier for the public to understand.

“I came as a governor some 11 years ago with an interest in communication and transparency,” Bernanke told a conference sponsored by the National Bureau of Economic Research. “And the Fed has made significant strides in that area,” he said, ticking off the introduction of quarterly press conferences and the adoption of a 2.0 per cent inflation target as among those changes. Both represent major advances in how the central bank communicates.

Ultimately it will be for others to determine his legacy, said Bernanke, who is expected to depart the Fed when his current term as chairman expires in January.

He has so far declined to discuss his future plans in public but President Barack Obama last month reinforced speculation that Bernanke was ready to return to private life by noting he had “already stayed a lot longer than he wanted.”