During his testimony before the Senate Banking Committee on Tuesday, Federal Reserve Chairman Ben Bernanke had a heated exchange with Tennessee Senator Bob Corker.
Senator Corker leveled a valid (although poorly articulated) charge that the Fed was subsidizing the big banks at taxpayers’ expense. Bernanke countered with a claim that what the Fed was doing was necessary to support economic recovery. Unfortunately, the Fed Chairman’s defense of his “QE3” program was based on belief, rather than evidence. It was also disingenuous.
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