Bernanke admits a ‘lapse’

Interesting admission from Fed Chair Ben Bernanke:

"Federal Reserve Chairman Ben Bernanke admitted Tuesday to Congress that he made a mistake talking to a television reporter about market perception of his inflation-fighting credentials.

Bernanke appeared before the Senate Banking Committee to talk about the relatively non-controversial topic of the need for financial literacy in the American public.

While most of the questions from senators focused on that topic, Sen. Jim Bunning, R-Ky., a critic of the chairman, questioned him about his comments to a television reporter at the White House Correspondents’ Association dinner April 29.

"I warned you to be careful about what you say because people would follow what you said very closely," Bunning said. Markets fell after Bernanke’s comments were reported the following Monday.

After Bunning asked him if he learned anything from the experience, Bernanke said: "That episode was a lapse of judgment on my part." And he said future communication with the markets will be through established channels and testimony.

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UPDATE: May 24, 2006 6:49am

The NYT notes Fed Chief Swears Off Improvising

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Source:
Bernanke admits a ‘lapse’
Chris Isidore,
CNNMoney.com senior writer, May 23, 2006: 12:49 PM EDT

http://money.cnn.com/2006/05/23/news/newsmakers/fed_bernanke/index.htm

Fed Chief Swears Off Improvising
NYT, May 24, 2006
http://www.nytimes.com/2006/05/24/washington/24bernanke.html

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