Bernanke Avoids Triggering One-Way Market Moves
As usual : he will not tell anything. All they know is to run money printing machines and invent nice stories that are hiding that they have no idea what to do (or they know too good what are they doing and the majority of us is feeling it for quite some time). Rich getting richer, and all the rest becoming poor. Good talk Ben. And a god work you are doing for your bosses
techmac:
As usual : he will not tell anything. All they know is to run money printing machines and invent nice stories that are hiding that they have no idea what to do (or they know too good what are they doing and the majority of us is feeling it for quite some time). Rich getting richer, and all the rest becoming poor. Good talk Ben. And a god work you are doing for your bosses
As usual : he will not tell anything. All they know is to run money printing machines and invent nice stories that are hiding that they have no idea what to do (or they know too good what are they doing and the majority of us is feeling it for quite some time). Rich getting richer, and all the rest becoming poor. Good talk Ben. And a god work you are doing for your bosses
He is just doing what he knows to do the best : nothing.
This time he was instructed which words to use and which ones not to use
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The release of Ben Bernanke's testimony, this morning, left forex traders confused as ever but avoiding a one-directional reaction is most likely the Fed Chairman's intention.
Failure To Harden
While Bernanke repeated that the Fed may taper QE in 2013 and halt it around mid-2014, he also said the pace of bond purchases is not on a preset course. In reaction, the U.S. dollar extended its losses, Treasuries erased earlier gains and stocks moved higher as Bernanke's comments failed to harden the market's expectations for Fed tapering in September.
Instead, the U.S. central bank head left all options open by saying that "bond purchases could be reduced more quickly if conditions improve faster or maintained longer if conditions are less favorable." Taking a flexible approach to his speech on Capitol Hill is a smart and expected tactic. Bernanke needs to appear flexible to Congress and willing to respond to incoming data and adjust the asset purchases as necessary.
We know that the Fed is still not satisfied with the labor market situation and they intend to continue their bond purchases "until a substantial improvement in the labor market outlook has been realized." In a move to reassure Congress, Bernanke also disconnected tapering with rate hikes, saying that even if their 6.5% unemployment target is reached, it won't be enough to warrant an increase in interest rates. There are two things that Bernanke wanted to avoid today #1 - driving Treasury yields sharply higher and #2 - raising too much concerns in Congress that they would adamantly oppose a reduction in stimulus.
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