Volcker blames Fed for 'bubbles,' says it isn't in control [View All]

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Former Federal Reserve Chairman Paul Volcker thinks the U.S. central bank is to blame for allowing bubbles to inflate asset markets, and says that current Fed chief Ben Bernanke is in a tough spot.

"I think Bernanke is in a very difficult situation," Volcker told the New York Times Magazine for a story it will run Sunday. The Times made the text available to the media in advance of publication.

"Too many bubbles have been going on for too long ... The Fed is not really in control of the situation," the Times quoted Volcker as saying, seemingly clear criticism of both Bernanke and his predecessor Alan Greenspan.

Volcker chaired the Fed between 1979 until 1987, when he handed over the reins to Greenspan.

USA Today