[Bernanke's Warning] "Stagflation Coming for 1-2 Years"

Ben Bernanke, former Chairman of the U.S. Federal Reserve (Fed)

[Asia Economy New York=Special Correspondent Josel Gina] Ben Bernanke, former chairman of the U.S. Federal Reserve (Fed), warned of the possibility of so-called "stagflation," where inflation soars amid an economic slowdown. He also criticized the Fed's inflation response under current Chairman Jerome Powell.

On the 16th (local time), Bernanke made these remarks in an interview with the New York Times (NYT) and others to mark the publication of his new book, "21st Century Monetary Policy." He explained, "Even under a favorable scenario, an economic slowdown is inevitable," adding, "There will be a period over the next one to two years when growth rates decline, unemployment rises slightly, and inflation remains high. That is stagflation."

Bernanke led the Fed for eight years starting in 2006 and played a leading role in overcoming the global financial crisis. On the same day, he also acknowledged the possibility of stagflation in an interview with CNBC. However, he said, "The current situation will be better," and did not expect a repeat of the 1970s and 1980s scenario.

He sharply criticized the Fed's inflation response, saying it was "too late." In April, the U.S. Consumer Price Index (CPI) rose 8.3% year-over-year. The market has pointed out that the Fed missed the timing to withdraw after unprecedented quantitative easing, which caused the inflation surge. Bernanke said, "The problem is why their (Fed's) response was delayed," adding, "Looking back, it was a mistake." It is very unusual for a former Fed chairman to publicly criticize his successor like this.

Additionally, Bernanke evaluated the cryptocurrency Bitcoin, saying it "lacks value stability" and will not establish itself as an alternative currency.

This content was produced with the assistance of AI translation services.