Federal Reserve Chairman Ben Bernanke is testifying in his semiannual report to the Congress on Wednesday. The stock, bond, commodity and currency markets are trying to find anything new or any hints of wavering from Bernanke’s comments last week. The long and short of the matter is that Ben Bernanke is trying to calm the minds and tempers of financial market participants with the notion that quantitative easing and bond buying will not end any time soon. At the same time, he is outlining the start of tapering and an eventual exit.
Some of Bernanke’s points continue to remain static. He said:
The economic recovery has continued at a moderate pace in recent quarters despite the strong headwinds created by federal fiscal policy. … With unemployment still high and declining only gradually, and with inflation running below the Committee’s longer-run objective, a highly accommodative monetary policy will remain appropriate for…
View original post 167 more words