Ben Bernanke is man of the Year by the Times Magazine

Ben Bernanke, president of the Federal reserve, that received this week the price of best person of the year from the magazine time, and is facing his reelection in the senate, is keeping his monetary policy steady.

The FED left yesterday the intervals of the interest rate low, between 0% and 0.25%, this level has been remaining the same this last year. Furthermore, stated that will leave interest rates exceptionally low during a low period of time.

Ben Bernanke is showing more optimism about the economic situation, mainly about the labor market. The information received from the Federal Open Market committee (FOMC) since the meeting in November suggest that the economic activity is improving and the destruction in the labor market has ended, the unemployment rate surprisingly decreased in November from 10.2% to 10%.

Ben Bernanke is being careful about it

However, Ben Bernanke wasn’t specially optimistic and showed caution, when adding that consumption growth is moderate although will continue being affected by unemployment , the credit restrictions and lower income growth. At the same time, Ben Bernanke said that companies are not likely to increase payrolls.

Other thing mentioned by Ben Bernanke, is the retreat of the emergency measures to help banks, the Fed wanted to remark that especial needs of liquidity will expire on February 1st 2010. This is any new date, but Ben Bernankeis telling that will now enlarge them when reiterating it.