Ben S. Bernanke, the Chairman of the Federal Reserve System of United States of America (USA) on 18 September 2013 announced that Federal Reserve would continue its fiscal stimulus programme. It sent a positive signal to the developing countries around the world and hence the stock markets in emerging world markets made an upsurgeon 19 September 2013.
The emerging world market was earlier of the view that US Federal Reserve withdrew its fiscal stimulus programme. In such a case, the Dollar will shift from the emerging economies of the world to the US. However, with this announcement, the outflow of the Dollar will be reduced considerably.
About Fedreal Reserve System
• The Federal Reserve System is the central bank of the United States.
• It was founded by Congress in 1913 to provide the nation with a safer, more flexible, and more stable monetary and financial system.
• The Board of Governors of the Federal Reserve System is a federal government agency.
• The Board is composed of seven members, who are appointed by the President of the United States and confirmed by the U.S. Senate. The full term of a Board member is fourteen years.
• The Chairman and the Vice Chairman of the Board are also appointed by the President and confirmed by the Senate. The nominees to these posts must already be members of the Board or must be simultaneously appointed to the Board.
• The term of The Chairman and the Vice Chairman of the Board positions are four years.
About Ben S. Bernanke
• Ben S. Bernanke appointed second term as Chairman of the Board of Governors of the Federal Reserve System on February 1, 2010. His second term as Chairman ends 31 January 2014 and his term as a Board member ends 31 January 2020.
• He originally took office as Chairman on 1 February2006, when he also began a 14-year term as a member of the Board.
• Before his appointment as Chairman, Dr. Bernanke was Chairman of the President's Council of Economic Advisers, from June 2005 to January 2006.
• Dr. Bernanke has already served the Federal Reserve System in several roles. He was a member of the Board of Governors of the Federal Reserve System from 2002 to 2005, a visiting scholar at the Federal Reserve Banks of Philadelphia (1987-89), Boston (1989-90), and New York (1990-91, 1994-96) and a member of the Academic Advisory Panel at the Federal Reserve Bank of New York (1990-2002).
• Dr. Bernanke has published many articles on a wide variety of economic issues, including monetary policy and macroeconomics, and he is the author of several scholarly books and two textbooks.
• He has held a Guggenheim Fellowship and a Sloan Fellowship, and he is a Fellow of the Econometric Society and of the American Academy of Arts and Sciences.
• Dr. Bernanke served as the Director of the Monetary Economics Program of the National Bureau of Economic Research (NBER) and as a member of the NBER's Business Cycle Dating Committee.