Bernanke Has Already Told Us: More Stimulus Is Coming

Bloomberg’s Caroline Baum writes: Let us begin by stipulating that Federal Reserve Chairman Ben Bernanke will be damned if he does and damned if he doesn't on Wednesday.

If he introduces a new bond-buying program or some other nontraditional policy to goose the economy, Republicans will accuse him of debasing the currency, creating the conditions for the next great inflation and encouraging another cycle of capital misallocation. If he doesn't introduce anything, Democrats will blame him for not doing his job to promote price stability and maximum employment, as specified by the Fed's dual mandate.

Let us further stipulate that Bernanke is a man of his word. Agree or disagree with his policies, he is a person of character. Therefore, we should expect the Fed to announce additional stimulus at the conclusion of this week's meeting. Bernanke has been laying the groundwork for months…..

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