Chief Economist

Editor’s Note: Difficult always being in the skin of a Chairman of the Federal Reserve. There are more difficult than others, and this is one of them. Inflation and recession are two episodes absolutely feared by economists. And if exist both in unison can you send Me your comments to: the Fed goes against his own willingness to Buenos Aires, Argentina on February 22, 2008 many people dream to succeed in their professions and occupy prominent positions. I also have those dreams, although today I would not be in the place of Bernanke, who ever dreamed of presiding over the Fed, and that dream is now a nightmare. And I would not be in place, because every moment the economic situation that touches you face becomes more complicated. Each time, increases conflicts that the poor Bernanke must reconcile.

And for worst, decisions come taking the Federal Reserve, which he commands, are engendering future headaches. Did I say all this? Because in addition to what all we see on a U.S. economy losing forces and with inflation upwards, the minutes of the last meeting of the Fed clearly show the panic that hovers in the maximum monetary authority. The pessimism of the Fed is also reflected in its macroeconomic projections. That is what I see in the reduction of the projected growth for this year from 1.8% range – 2, 5% to 1.3% – 2% increase in projections of unemployment from 5.2% to 5.3% and the forecast for inflation which rose from 1.8% – 2, 1% to 2.1% – 2, – 4%. In the opinion of David Wyss, Chief Economist of Standard & Poor s clear that these pessimistic projections do not complete still align with the market: I think are more pessimistic about their economic forecasts than they were before, but are still more optimistic than I am. As it is my suspicion, Wyss believes also that the American economy is already in recession.