Did Bernanke make a mistake? ....or was it inevitable?

Question

Our economy is slowing, but energy prices are rising.

I think the Federal Reserve forgot to look at the big picture.

China and India are buying light crude at any price to feed their growing economies. In a slumping economy the U.S. may consume less oil, but the developing countries production outweigh the U.S. consumer demand. It may take years for the developing countries to slow down in producing its goods. The global demand for cheap goods is strong. The U.S. may purchase less of these goods in a bogged down economy but some one is always there to take its place. Times have changed and the strength of the United States economy is weakening.

Answer 1

Lower interest rates, on their own, will not increase the oil supply or refining capacity. Instead, consider interest rates the cost of money. By increasing the rate, Bernanke increases the cost. Thus, less loans are made. Given our current debt level, this is not a mistake. It's time to pay down some debt and save a little while the economy is still growing.

Answer 2

No, he didn't make a mistake if you are referring to the last hike in rates. The market was expecting this hike, the fed had already projected the hike, so had he not gone through with it, the markets would have completely lost all confidence in the fed.
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\The mistake he will most likely make will follow in the footsteps of almost all fed chairpersons before him- going too far with future hikes.