Bernanke's Bailout

The Federal Reserve chairman sent stocks surging and made many investors happy. But he's also taking risks with inflation

Federal Reserve Chairman Ben Bernanke grabbed the spotlight back from his book-writing predecessor, Alan Greenspan, on Sept. 18. Most experts were betting that the low-key academic would move cautiously and cut the federal funds rate by a minimal quarter percentage point. But Bernanke and his rate-setting colleagues cut the funds rate by a half percentage point, from 5.25% to 4.75%.

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