My Home About Me

Many readers have asked me to comment on the way Barney Frank (D-MA) put pressure on Fed chief Ben Bernanke in hearings last week to cut interest rates, and thus to (supposedly) create more jobs for this (supposedly) weak economy. There's nothing new about putting political pressure on the Fed. And in some sense Bernanke has invited it, by advocating moving away from the Fed's mandate of full employment and stable prices toward a regime of "inflation targeting." And there's nothing new about politicians like Frank using Fed hearings as an opportunity to spout their partisan talking points. What's new and distasteful is the whiff of anti-Semitism that emerged in Rep. Frank's questioning of Bernanke last week. Fretting that Bernanke -- who is Jewish -- favors controlling inflation over creating jobs, Frank said,

"...you say we have the two objectives, stable prices and employment -- but one of those might -- I mean, I appreciate the fact that you have two children and you love them both, but I'm afraid that one of them might get a little bit more for Hanukkah than the other if we're not careful."

What was the purpose of that particular metaphor? To draw attention to the fact that Bernanke is Jewish? To suggest that Jews are stingy, or to appeal to the stereo-type of Jews as money-lenders (who are especially harmed by inflation)?

Thanks to our financial correspondent "Irrational Exuberance" for the link.

Update... A reader points out that Frank is himself Jewish.

bailout   Basic Materials SPDR (XLB)   bond trading   bond yields   capitulation   climactic   commodities   credit crisis   credit crunch   Currency ETFs   day trading   Deron Wagner   DJIA chart   economic data   Emini's Nas 100   emini's S&P 500   emini's S&P 500e   ETFs (exchange trade funds)   ETFs (exchange traded funds)   Gold Miners ETF (GDX)