Alabama Insurance

Around the country this summer, at least half a dozen hospitals have closed obstetric stations, others are limited trauma services, and a series of rural clinics have been temporarily locked in the wake of the increased costs of medical insurance found.

Mercy Hospital in West Philadelphia closed its maternity station on Friday and Largo Medical Center, near Tampa, Florida, to make plans for that, in December.

During recent weeks, the only Trauma Center in Las Vegas closed for 10 days, the Central Florida Regional Hospital in Sanford, Fla., reduced surgical procedures for five days, and a handful of rural clinics across the Mississippi empty sat in the summer heat for a part in the week. All closures was bad because of insurance problems.

The rising costs of misbehaviour during the last two years, doctors, for batteries of tests costly and risky to limit, many doctors decided very early retirement. Now the cost has a direct impact on medical institutions and medical care of patients, to provide, through interviews with hospital administrators in many countries.

In total, more than 1300 health care institutions are already affected, according to a survey by the American Hospital Association. The survey, published in June that 20 per cent in 5000 Member of the Association of hospitals in health and other organizations have been back on interfaces services and 6% have eliminated some units. Many of these units are obstetric stations, including medical errors in the past have led to expensive jury awards and settlements.

”This is likely to want to be “much more serious,’’said Carmela Coyle, Senior Vice President of the policy of the hospital association.”We are likely to see more closures of services.” ‘

So far, no cases of deaths were due to reductions, but hospitals say the risks for patients increases.

Trauma”Notre system has actually fallen apart,”Cameron said Saturday, the Chief Executive of the Mississippi Hospital Association. ”This is a so-called golden hour, in which a patient with severe head injuries a need to see a specialist, as a neurosurgeon, and in some areas of our State of the service n ‘is more available.”

In WV, two maternity hospitals closed stations and several hospitals no longer have neurosurgeons to treat head injuries or orthopedists mending broken bones, said Steven Summer, the executive director of the West Virginia Hospital Association.

In New York, many of the biggest hospitals have their prices down insurance in its own nonprofit insurance. No reductions have been in service in the city or elsewhere in the state.

Mr. Steven Visner, an insurance expert with Ernst & Young, consulting company, has had many hospitals had inquired about the creation of an own insurance companies. But it takes more funds than many of them, he said, and inform the institution to greater risk than buying coverage support.

The New Jersey Hospital Association says insurance costs in the state, have almost doubled over the past year. Gary Carter, Chief Executive of the Association, said that although most services have been maintained, some hospitals in New Jersey say the specialists are balking on taking office emergency call.

”But this is just that in New Jersey,”he said. ”We expect to see, hospitals, more and more to return to cut services.”

The insurance costs have also risen sharply in Connecticut, said Ken Roberts, a spokesman for the Connecticut Hospital Association. But he said the association has not received any reports about reductions in service.

Around the country, hospitals say they are both cutting services, because the high cost of their own insurance is overwhelming and because specialists, is not prepared to bear the new costs for ‘assurance of their practices, are increasingly rare.

Some specialists, for example, have abandoned the practice and life began again in countries where abuses insurance prices are still too degenerate. Many birth assistants and surgeons are confined to low risk. Other specialists have advisers, counsel to leave, but actual treatment to others to avoid medical insurance recorded as a whole.

The costs are really staggering. Premiums for doctors have doubled, tripled or, in some cases as high as $ 200000 per year for the birth assistants in Fort Lauderdale and Miami. But prices are starting to look mild in comparison with the huge bills for health insurance houses.

At Philadelphia, for example, the costs of liability insurance law doctor Thomas Jefferson University Hospital, operates several hospitals, has doubled this year to $ 32 million. As a result, on June 30, Jefferson concluded the maternity unit in its Methodist Hospital of Philadelphia and Southeast cut 270 jobs at Thomas Jefferson and the Jefferson Hospital for Neuroscience.

In June, the Brandywine Hospital closed the trauma center, which served as the suburbs southwest of Philadelphia and Paoli Hospital, also in the vicinity of Philadelphia, closed its paramedic unit, said Andrew Wigglesworth, president of Delaware Valley Health Care Council.

Few programs have been approved by the conservative legislation, but the Supreme Court of the United States finally banned the tax and confirmed that a man, one vote “.

Mr. Folsom was also an opponent of the Ku Klux Klan and, in 1949, he successfully insisted a bill is directed against the group.

In 1962 Mr. Folsom gubernatorial campaign had started as favourites. But the winner of a big leeway, Mr. Wallace, hinweggefegt, the governor of the department for the first time by the promise of Federal intervention to confront segregation in schools. From late 1970 to early 1978, Mr. Wallace was married to Mr. Folsom’s niece, Cornelia Ellis Snively. Start contributed Versicherungs-Gesellschaft

Elisha James Folsom, the son of a deputy sheriff, was born Oct 9, 1908, near the island of Elba, Ala. He spent a year per person at the University of Alabama and Howard College in Birmingham after bachelor’s, but was forced to drop out of College, if a flood severely damaged the farm family.

In 1931, he entered the Merchant Navy. Two years later, he was Director of Administration and Alabama in relief for a time, it was decisive, works Progress Administration in Washington. While in the capital, he worked with members of Congress in Alabama and studied political science and rhetoric to George Washington University.

He helped start an insurance company during the years 1937 and worked as an insurance agent, as he continued his political career.

Mr. Folsom leaves his wife, the former Jamelle Moore, 9 children and 10 grandchildren.

The association also said for other state measures, laws, would relieve the results by Hurricane
RISMEDIA, Sept. 16, 2005? The National Association of Realtors? strongly recommended that the U.S. Department of Housing and Urban Development, all vacancies their homes, including rights to the exclusion of homes and properties in Section 8 available for victims of Hurricane Katrina.

In a written statement in the minutes of U.S. Rep. Gary Miller (R-Calif.) at a hearing by the House of Representatives to the USA “Sub-Committee on Housing and opportunities, including NAR , Favored by many other state measures and laws to be of assistance to individuals and communities most affected by the hurricane.

The effects of Hurricane Katrina is a disaster unlike any ever lived in the USA? NAR said. ? The extraordinary measures are necessary to rebuild these communities and return to normality devastated the many victims of Hurricane Katrina.?

Most bills, NAR contends that apply in the event of natural disaster insurance. Among them:

? ? Flood Insurance Program increased cost of debt Authority Act of 2005 (HR 3669),? which already has the House of Representatives to the USA, a temporary increase of the National Flood Insurance Program? Authority loans to pay fees after the devastating tragedy of Hurricane Katrina.

? ? Owner availability Insurance Act (HR-846)? A federal reinsurance operations coverage available to contribute to improving the availability of homeowners? Assurance. How Louisiana, Mississippi and Alabama are trying to rebuild a program of this type can not ensure that own a house? Insurance is available and easily accessible to people want to continue living in their communities.

? “Participation in the surpluses of the resumption Protection Act (HR 2668)” can be insurance companies to create reserve funds tax advantages of dollars to pay for future claims major natural disasters. This could help protect insurance companies devastating debt, which, as it was Hurricane Katrina.

Assistance to victims to rebuild

Other measures to protect the NAR, consumers and homeowners were by the hurricane.

For example, by e-mail sleep, victims may not be able to obtain advice billing correctly creditors, let alone to pay for weeks and months to come, maybe. NAR, said should not be victims of their credit histories suffer from late payment, which can prevent obtaining funds for the reconstruction of their lives or to buy houses.

The amendment to the Fair Credit Reporting Act, creditors would be prohibited from filing default interest information with intelligence agencies during a state of emergency declared in a disaster like Hurricane Katrina.

NAR also encouraged Congress to lift sanctions for a Good Samaritan, occupation broke the requirements for housing for victims of Katrina.

Rebuilding communities

During the confrontation with long-term solutions for reconstruction after the hurricane, NAR, said the Confederation need support, promote private sector growth and development. The need for large amounts of capital for the construction of new housing is acute? NAR statement said.

As an incentive for reconstruction, NAR encouraged Congress to adopt a few bipartie bill (HR 1549), a tax credit for up to half the cost of construction or renovation of affordable housing. ? This incentive mechanism or other would be an important resource for the capital for the restoration of housing to decimate the Commons? NAR said.

Even small businesses in the three states concerned have economic support, so that they can once again able to play the central role in the region’s economy. NAR asked Congress to act quickly to programs of the Small Business Administration.

? We call attention to the revision of the criteria SBA’s [Small Business Administration] disaster assistance programs to ensure that these programs are able to meet the needs of the small business? The owners and operators of independent contractors? NAR said.

Mr. Wallison noted that the nation’s largest banks have $ 165 billion of capital to mitigate losses, far more than the $ 13.2 billion of reserves at the Federal Deposit Insurance Corporation’s Bank Insurance Fund.

But Congress is expected that the resistance against the idea.

”It is a question of whether Congress is up to this type of step,’’said Robert E. Litan, Senior Fellow at the Brookings Institution. ”He likes general deregulation and the guilt of regulatory authorities for all problems.”

The $ 100000 person-a-plan

Nevertheless, a number of changes during the next year. Many experts say that the concept seems to have drawn the greatest attention is now in Congress on the one hand, that the secretary Brady said last week that the administration in charge.

It would guarantee deposits up to $ 100000. Now applicants are assured of $ 100000 in deposits placed in different organs, where they have accounts, and for money to accounts at $ 100000, creating nearly unlimited cover.

Predicting that the Congress could be the Federal Deposit Insurance Corporation, for their insurance premiums on deposit insurance systems in accordance with the risk of bank assets, strength and major depositors of banks, an automatic loss — About 10 to 15 percent - in its unversichert deposits in the event of failure.

The fear of charges for banks

The question of borders on DGS insurance and the state commercial banks are closely linked. For always, financial experts wonder if the Nation’s Commercial Banking System is the meeting of these tribes, that the Government is invited to assist.

Few are assuming that even in the worst conditions, commercial banks had problems dimension of the crisis economies of the industry. The legal structure of the Bank was much higher, banks have a much more diversified range of goods and their management in general, more professional.

But the banking sector is almost three times larger than the economies of the industry. Even a modest impact could be very costly for taxpayers.

An Industry May disappear

While the fate of the Industrial Bank is uncertain, the future of the industry savings seems obvious. Until the end of the decade, experts say, it is off, in large part because of the bailout legislation.

On the reasons that the industry must first be before the U.S. taxpayers is to pay the necessary steps to healthy institutions, remained on a significant amount of its profits each year and place it in the direction of the cleanup-as well as their costs, expenses have been collected. According to the legislation, capital requirements has been increased to a level roughly equal footing with banks, the amount of money, an institution to a single borrower has been limited, and a new rule states that at least 70 per cent of the wealth of an institution, from 60 per cent have been mortgaged for investments in the corresponding assets.

While some dispute caution in these changes, the speed with which they have been in the industry seems draconian, especially in the area of the harshest criticism.

Saturday, Senator Barack Obama (D-IL) explains his presidency on command historic Old State Capitol in Springfield, Illinois, 11:00 pm ET.

Obama then Tourist Cedar Rapids, IA for a town hall session 5:00 PM ET. He has a 8:30 PM ET Meet and Greet in Waterloo, IA.

Sunday, Senator Obama continue stumping Hawkeye in the country hold a rally 1:00 PM ET in Iowa State University, Ames, IA.

The legislature gives Illinois at Chicago for a rally 6:30 PM ET at the University of Illinois-Chicago Pavilion.

Even, he announced his hats weekend with an appearance Sunday on CBS “60 Minutes”.

Thus, many questions will be answered in the next 50 hours. Here are a few of them:

If Senator Barack Obama, beginning with a section speeches, Bush has the 1999 (but not Clinton, 2007), it is mercilessly the rest of the year and allows America to learn about his heart (and its head)?

If the Obama campaign’s often said, the commitment to a “different kind of campaign”, they express tenderness or candidate for extended logistics, which are beginning to ask journalists - print / on air, or at least among themselves — If it is not common for a trip announcement, how can he run the country ??!!??”?

If the Springfield event Kickoff street is blocked cable?

If the candidate for a “Pop Quiz” question of a voter he flubs? (Senator Obama’s Note: A 1 / 2 gallons Tropicana Pure Orange Juice Tropical Strawberry Banana costs about $ 2.59. LINK)

If the quantity sizes are so large that the overwhelming passage of 500 starts to believe that something special?

David Axelrod is harassed by the media whenever it appears on the line?

If the Web for campaign contributions dramatically Spike way, the passage of 500 believe that something special?

If Lynn Sweet-all day, every day TV appearances, leading to strengthen the cable channel SweetTV (confused with many late at night Tuning-Viewer is based on the name alone)?

If the campaign to make America fall in love with Michelle Obama this weekend, or are they waiting for? (Beyond the “60 minutes” turn…)

If Robert Gibbs wear sunglasses, even inside?

Then the “60 minutes” piece so difficult to gauge where most of Obama coverage (and most of the “60 minutes” profiles attractive Democrats) or, er, all the more?

If the Clinton campaign and observed all this and say: “If we do not oppose all this research we collect, why should we put them together?”?

If the Republican National Committee to prevent the press releases on the basis of their own extended search opposition, contrasting Obama’s mid-2007, with his voice from the rhetoric of quotations from his Illinois days - or will they continue their bold hope that Obama is the only force, Hillary Clinton, you can benefit from the appointment quick and easy? (See below for an idea….)

If all new, yet-to-be-Senate, announced the location overlooking fun on the runway and say, “I really want to sit around the Hart building?”?

If the phystical Crush weekend of the campaign believe that the budget must be hundreds of thousands of dollars for private security services, or to exceptional demand the early Secret Service protection?

If the candidate who spoke of the need to move beyond cynicism apparently inherit days in modern campaigns - you know, a section of speeches, bumper stickers, slogans, soundbites, logos and a legion of advisers and flaks, - all on the screen tomorrow?

If comparisons to explicitly Lincoln?

Will it flashes (understandable) Obama, nervousness or (rumours way) Obama whim?

While we expect the answers, very few “must-reads as follows:

1 The “Washington Times”, the misfortune boil with the conservative Republican three major McCain, Romney and Giuliani. LINK

2 The New Hampshire Union Leader on the front-loaded schedule and determination New Hampshire’s first first first place. LINK

3 The Chicago Tribune “on the competition between the screws of the Great Democrat Three of Clinton, Obama and Edwards. LINK

4 The “Washington Post” in the White House when it’s lame duckery on 2008. LINK

Befitting White House, the first in 80 years with nobody to run the President, President Bush has no public events today.

But die’08ers are in force today and this weekend, competition for a piece of attention.

Senator Hillary Clinton (D-NY) speaks Bronx Borough President Adolfo Carrion’s State of the Borough address at 9:30 pm ET at Hostos Community College, Bronx, NY. Tonight, Senator Clinton plans to increase coin in some Cipriani in a closed, press Fundraiser.

It was last week by Hurricane Katrina swept the Gulf Coast to the USA, and yet most companies air traffic management and financial institutions, to assess the damage and losses. Thus, late as September 7, Louisiana and Mississippi were still focusing on their basic concerns - scope employees and their families.

A sea of downed telephone and utility line communication difficulties and floods consumed, as most of New Orleans has forced companies with offices in the city to accept that this could be months before you really know what they have lost.

Industry insiders like Doug Falcone, Chief Executive of Whippany, NJ-based organization of independent distributors access to money, agree that economic, structural and emotional devastation by Katrina is more than sufficient and sustainable, but under the shroud of darkness is a ray of optimism and hope.

The sector has achieved

Companies throughout the country were sent to offer support. De offerings offices and equipment on donating money, supplies and the apparel industry, the industry has been rapidly taking over. The Association of Air Traffic Management has established a fund for the Corporation of air traffic management of the hurricane, Hudson, NH-based Dover Electronics has announced the creation of a fund Triton employees earlier this week, and Chantilly, Va.-based Universal Debit & Credit Corp. pushes water and other supplies to families affected by the hurricane in Long Beach, Miss (see blog).

Other companies, like Houston-based Cardtronics, LP and Greenwood Village, Colo.-based First Data Corp. is money to support victims and families.

“Everyone also seems to work well together,” said Arthur McMahan, Chief Operating Officer of Carrollton, Texas-based Mobile Express Capital Corp. “Even competitors work hand in hand to try to help each other.”

The sentiment was shared by the more “Katrina”, including Ron Schuldt, President of New Orleans-based processor Columbus Data Services, Brian Kett, president of Long Beach, Miss Triton-based systems. “We have one end of the assumption by friends of Triton in the world, and we thank you so much for your thoughts and prayers,” wrote in an e-mail chain-2 September.

As a result of “Katrina” took as CDS, Triton and New Orleans-based Innovus Inc.. / Momentum Cash Systems LLC, were optimistic about their activities.

Wachovia Corp. announced that it has a $ 1.75 million to support victims of Hurricane Katrina, bringing its total contribution for victims of hurricane aid organizations to $ 2 million.

“This is the only way we can overcome the tragedy of immense disaster like this is drawing as a nation and what we can do to help our fellow citizens in great need,” said Ken Thompson, CEO of Wachovia. “People in Louisiana, Mississippi and Alabama are not alone. Like the rest of our people, the people of Wachovia want to lend a helping hand so they can begin to rebuild their lives and communities. ”

Wachovia is an additional donation of $ 750000 of the American Red Cross, to increase the contribution of society as a whole for the organization to $ 1 million. Previously, the Company announced that $ 250000 donated to the American Red Cross Disaster Relief Fund.

The company is also extending its program of matching gifts, matching an additional $ 1000 per employee for donations to the American Red Cross until the end of the year. The program games regularly until $ 4000 per employee per year for donations to educational institutions and other Nonprofits.

In addition, Wachovia a donation of $ 800000 for the creation of a fund of the Gulf Coast Community Foundation $ 200000 Mississippi and the creation of a fund of the Community Foundation of South Alabama in Mobile. Wachovia is the Fund for the two advisory boards, partnerships with community leaders in identifying long-term needs.

“We support the creation of these funds, because we know we must look towards the future - which will help the region prosper in the years to come,” said Thompson. “We invite other businesses across the country, we contribute to these funds to support this work, which is essential that the gulf coast of long-term development.”

Wachovia collecting donations to the American Red Cross
In addition to these contributions, Wachovia is to continue to accept donations to the American Red Cross for Wachovia and South Trust financial centers throughout its retail market and its bank e-mail.

Everyone can help victims of Hurricane Katrina, along with thousands of victims of disasters throughout the country each year, financial aid gift to the American Red Cross Disaster Relief Fund at any time, Wachovia South Trust or financial in all countries, except Georgia.

Because of a previous agreement on Atlanta’s WSB-TV Channel 2, donations to the American Red Cross, family on family 2 Relief Fund in Georgia financial centers.

Schwindender credit markets switch to a new dangerous phase, and everybody trying to municipalities, sanitation fixed network for people with a car loan is to pay the price.

Thursday, Alabama populous Landkreis teetered on the fringes of what could be the nation’s largest municipal bankruptcy.

A couple of major importance for financial companies have indicated that they receive notice of default by banks nervous ready to seek payments. Tourbillonné reports that the largest bank in Europe unloaded $ 24 billion opaque mortgage securities in a fire sale.

Who on the front - a Bond dealer for investment Manager - say the latest batch of bad news shows a shocking new era in the credit crunch could send a shock wave to the economy.

“We are in the historic centre of region scarier than hell,” said TJ Marta, an analyst who monitors the Fixed Income markets at RBC Capital Markets. “I have heard many people say that the market is now broken forever.”

The problems are jumping on several fronts, and all have different effects.

The $ 2.6 trillion industry municipal borrowing has not been seriously jolted from Orange County, California, government presented the largest bankruptcy in the history of USA in 1993.

Well, the industry is facing a multitude of threats, how cities and school districts money.

Alabama’s Jefferson County is considering a bankruptcy proceeding of a request to resolve the financial crisis of $ 3.2 billion through the networks debts. The Department - the financial situation of the Centre in Birmingham, as his headquarters - is in negotiations with banks to develop a solution to their liquidity crisis.

In the meantime, the assurance that cities purchased for the protection of their obligations loses its lustre.

The rating agencies to deal with an increase in defaults on debt risky loans by insurers would cost as it is not worthy of its highest audience. These assessments are important, that the obligations of insurers in the economy.

Even a plan Ambac Financial for 1.5 billion dollars of USA to get first-class can do nothing and generate new investors in order to reduce the fear.

“The problem with insurance products, their value is seen as both eye on insurers,” said Richard Tortora, President of Capital Markets Advisors, the north-east to advise municipalities.

These negative perceptions could take years, he said.

It shows that credit markets are facing a new round of tightening, beating market only considered relatively safe month.

Thornburg Mortgage and a pension fund, a subsidiary of The Carlyle Group, said lenders demand more money for financial lines. The applications, the so-called margin calls is not yet fully implemented by individual companies.

Thornburg said he received a standard on the lines, so far. This has sparked cross-default like many others, said the company. Analysts fear that the collapse of strands.

Four years after the landmark adoption of Corporate Governance laws, the men behind the Sarbanes-Oxley Congress. The departures of Senator Paul Sarbanes (D., Md.) and Rep. Mike Oxley (R., Ohio) spellcheck changes during the next year to the House of Representatives and Senate committees to resolve the Wall Street, banking and finance.

The new guide banks panels will influence how the Congress is addressing issues such as whether hedge funds should be settled if the commercial banks should have the possibility of seizure of real estate brokerage, business and government should treat by Fannie Mae and Freddie Mac.

Other changes within the House who has a new chairman of the committee and that, regardless of whether the Democrats or Republicans in the House of control over the November-options. On the other side of Capitol Hill, Senator Chris Dodd (D. Conn) succeeds M. Sarbanes Democratic as a senior member of the Senate, the Banking Committee. If the Republicans, as expected, retain a majority in the Senate, the Panel on the basis of its chairman, remains Senator Richard Shelby (R., Ala.), but remains the ranking member influences, the group because of its agenda day. Mr. Dodd is located close to the value of paper and insurance industry about its presence in the country.

Things are more complex in the house, where no less than five lawmakers could earn on the spot beginning of the Financial Services Panel. If winning the majority of Democrats, liberals November Rep. Barney Frank (D., Mass.). Would inherit the Hammer. If the Republicans retain their majority, is a competition between Representatives. Spencer Bachus of Alabama and Richard Baker of Louisiana. Two other Republicans, David Dreier of California and Ohio Deborah Pryce, outside chance of success, Mr. Oxley.

There was no ventilation public qualities of each member to bring to the Post. It is estimated, the bad form legislator speaks of public campaigns for the committee chairmanships, especially before deciding on an election that control of Congress.

“The presidency of the committee is not scheduled for a vote until after the election of the next congress,” said Mr. Bachus, in a statement. “Until this moment, my attention to the legislative tasks and the preservation of our majority.”

Republican committee chairmanships are doled by a panel of chairman of the party and representatives of different regions of the country. The committee members have no formula, but as a general rule, their decisions on the basis of length of service, party loyalty, fundraising, personality and effectiveness.

“The race to the [Financial Services] president will probably appeal most of all commissions,” says Rick Lazio, a Republican former member of the panel, now works for JP Morgan Chase & Co. “Both candidates have submitted their strengths and has held leadership positions within the commission. It is still in the air”.

Mr. Baker, in its 10 electoral period, is a former real brokers and brokers, supported the revision of Fannie Mae and Freddie Mac are congressionally chartered the two companies, the financial support of home mortgages. More than backslapper policy wonk, he has not many friends among lawmakers, but winning praise for his knowledge of financial markets.

Mr Bachus, a former prosecutor, has less seniority than Mr. Baker and would have little chance, development levels of him but for its ability to fund-raising and political intelligence. Earlier this year, Mr Bachus backed Rep. John Boehner in his successful race for majority on driving licences Rep. Roy Blunt. He is a supporter of the Community and banks this year in collaboration with Democrats on legislation on the fight against predatory lending.

Ben Bernanke, even if it is almost sure to win Senate confirmation as the next Federal Reserve chairman, it is likely that some difficult issues following the confirmation of its commitment to meeting a target inflation His views on the budget deficit and tax cuts and his independence from President Bush.

Mr. Bernanke, who served three years on the Federal Reserve Board, is president of M. Bush Council of Economic Advisers. Even Democrats say confirmation seems assured. “We can not on politics, but at this point …, [the appointment] is noncontroversial,” said Senator Jack Reed, Democrat of Rhode Island and a member of the Senate Banking Committee, which considers that the hearing .

Nevertheless, it is. Here are some key issues and expect that:

Mr. Bernanke has long opted for the definition of an explicit numerical target for inflation, perhaps 1% to 2% excluding energy and food, strengthening the Fed in the fight against inflation, credibility, to improve the accountability of their expectations and direct. Sceptics, including the current chairman Alan Greenspan, considers such an objective, the Fed flexibility to react to threats to growth and employment.

Many senators agree. “When he was appointed, Mr. Bernanke said he would follow Greenspan’s policy,” said Senator Paul Sarbanes of Maryland, the group because of its greatest democrat. “We have to square this statement with previous statements on targeting inflation. The European Central Bank, inflation targeting,” … It is usually represented perspective, it has the disadvantage of economic growth and ‘employment. ”

At the hearing in 2002 to serve as his appointment as governor of the Fed, Mr. Bernanke said Sarbanes: “I would not return to its inflation target at the expense of setting up a deep recession. The Fed has short-term interest rate from 4% to 1% since June 2004 and Mr. Greenspan is expected that they accuse 4.5% before retiring at the end of January. Mr. Bernanke, which may be supported if one waits more than the price increase, even though it is unlikely that a definitive answer. Some analysts expect to raise the price of one party to prove that he is a determined fighter, as inflation Mr.Greenspan.

Mr. Reed said he is concerned about the Fed increases the price “to demonstrate toughness,” if economic data do not support. While economists believe low inflation, it is not necessary to increase long-term unemployment, M. Reed said: “We live in a much shorter race.”

Other senators, including several Republicans, are likely to require that the Fed remains focused on inflation, with or without a goal. “If we have price stability … economic history has shown that we have a thriving economy,” said the committee chairman, Richard Shelby of Alabama. Utah Republican Senator Robert Bennett, said continuity with Greenspan “: concentration on price stability in the first place.”

Several senators said that the Fed is free, an inflation target, without consultation with them. Some Fed officials and scientists have argued that the adoption of a lens is perhaps a consultation with Congress and the White House, and perhaps even a revision of the Federal Reserve Act. “I do not want the Congress to supply the Fed,” said Shelby. “It should not be questioned in the legislation, it should be marketed until [Fed] Board of Governors.