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Fed head nominee pledges consistency with Greenspan

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Ben Bernanke, recently nominated to succeed Alan Greenspan as head of the Federal Reserve, pledged to carry on his interest-rate policies and to move toward more openness if the Senate confirms him for the job. "With respect to monetary policy, I will make continuity with the policies and policy strategies of the Greenspan Fed a top priority," Bernanke said in prepared remarks for the Senate Banking Committee at his confirmation hearing. The nominee pledged to maintain the focus on long-term price stability "as monetary policy's greatest contribution to general economic prosperity." Bernanke said monetary policy has become "increasingly transparent to the public and the financial markets" under Greenspan and that he supports this openness. An example of the increased openness of the Fed under Greenspan is the written text released when the Board of Governors makes a decision, such as the recent series of hikes to the federal funds rate. For the last year, Greenspan, and hence...