Is Bernanke Keeping too much Money in the Economy for too Long?

The Fed’s main job is to keep the dollar strong with conservative RGDP growth and to keep inflation down. With this in mind, the Fed injected billions of dollars into the American economy to maintain a certain amount of stability. Nearly everyone and their sister was able to receive help from the Fed when the economy was at its worst - and it did keep damage to a minimum (although it can be argued that future Americans will be paying for it.)

Now that it seems consumer confidence is returning, and the American economy is making somewhat of a rebound, Bernanke should consider taking money back out of the economy now. If he waits until a full recovery, the American dollar will see a great amount of inflation. He did mention that in Q1 2010, he will slowly begin to raise interest rates. So far Bernanke’s track record has been a bit lacking, but now that he has been reinstated for four more years of what will hopefully be a recovering economy, he has the opportunity to recover his image.