July 10 (Bloomberg) -- Ben S. Bernanke has made
transparency one of the defining themes of his time at the helm
of the Federal Reserve. The virtue of this transparency is that
it’s easy to evaluate how well the Fed is conducting monetary
policy. And it has become transparently clear that the central
bank has failed to take the actions its own principles demand.
Bernanke is the first Fed chairman to clearly state a set
of principles to guide monetary policy. They recognize the dual
mandate set down by Congress -- that the Fed must try to balance
low inflation and unemployment -- and articulate goals for each.
The Fed is targeting a 2 percent inflation rate and plans to
keep unemployment near its longer-run normal rate, which it
currently judges to be between 5 percent and 6 percent. By
announcing these goals, Bernanke hopes to reduce uncertainty and
anchor the expectations of consumers and companies.