Critics of Bernanke forget one major, even mega-matter.
The US Congress requires by statute that the Fed keep inflation low AND growth going.
By contrast the Bank of England only has one target…inflation.
You can’t blame Bernanke for trying to take the edge of a probable recession. He is required to by his employers.
Also bear in mind that it is better for the US that the adjustment made inevitable by the the mad irresponsibility of many in recent years, is accomplished through a longer period of slow growth than a significant recession. The damage done by recession to hard working people and businessmen (and hence to the long term health and incentives of the economy) is appalling. Perfectly good firms ( ie not founded on bubble economics) are forced out of business because customers pay late or not at all, for example, and the banks withdraw previously reliable sources of finance for ordinary working capital needs.
In short, the best outcome is a period of slugflation as the Fed raised rate when the economy stabilises and during which time the regulators can sort out how to stop next time the financial hoodlums who caused this mess .
