US monetary policy - experiment with uncertain outcome

Since becoming Fed chairman in February 2006, Ben Bernanke has turned American monetary policy upside down. While only a few years ago the public focused only on the Fed's next interest-rate decision, today the development of the Fed's balance sheet is the point of discussion. At the heart of this debate is the fear that the extensive support programmes of the Fed will not only stabilise the US economy but could also heat up inflation. This contribution examines Bernanke's monetary policy, describes the measures of the Fed and discusses the risks for prices and for the independence of the US central bank.