In a speech at the Economics Club of Washington, Bernanke reiterated his position on ultra low interest rates.
His headline quote is that the economy is facing: "formidable headwinds." He then went on to restate his position in detail. For the overall economy, he sees a moderate recovery. Credit remains tight, especially for individuals and small businesses.
The labor market is still weak, despite an end to deep job losses. Along with the weak job market, consumers are holding back on spending, afraid of losing their jobs.
He sees inflation as not a major concern. Finally, the Fed's oversight of the banks will prevent another crisis.
The big question is how the markets will interpret Bernanke's remarks. Yes, the Fed may keep rates low for some time, however, were November's numbers the first shot across the bow? Should we be looking six months down the road? Remember, markets trade on future expectations, not so much on present day events.
Would you buy gold and commodities on dips at these levels?
Closing Bell: Slow Growth Better Than No Growth (NYT, SLAB, V, MA, ZGEN, JASO)
InterDigital (IDCC): A Wireless 'Patent Machine'
Chasing Value: BP's Risk Manager Missing in Action
Reader Comments (Page 1 of 1)
12-07-2009 @ 6:42PM
clikdawg said...
See? All Wall Street had to do was send futures lower this morning, and Ben hastened to assure them that nothing like common sense was about to break out on HIS watch ...
12-08-2009 @ 5:24AM
dang1067 said...
Bernake's goal is to DEVALUE the dollar further into the SINK hole... Any monkey can figure that when you offer super ultra low interest rates you profits NOTHING!!!!
Doesn't it occur to all of you that NOT a SINGLE profiting Giant Banks has offered 0.99% interest rates like the Federal Reserve has been doing???? And those giant Banks has been charging the consumers at what RATES???? Yes 31% interest rates and are raking profits by the TRILLION$$$ in such a short period of time!!! So much profits they're considering of paying off all their bailed monies!!!
Bernake as I have been saying all these time is ISN'T in the best interest of America... Instead he's main INTEREST is to ROB America, to entire WEALTHS of America into the accounts of Goldman Sachs, Morgan Stanleys, Central Banks using the loss/gains manipulation of Wall Street!!!