Bernanke Summary

• Posted by Robert Sinn
• on July 17th, 2012

Bernanke summary: Europe and the US fiscal cliff are the key downside risks to the economy and the current path of inflation is “subdued”. Then the Fed Chairman wraps up his speech with the following comments which leave everyone wondering “Is he laying the groundwork for more QE? It sure sounds like it”:

“Reflecting its concerns about the slow pace of progress in reducing unemployment and the downside risks to the economic outlook, the Committee made clear at its June meeting that it is prepared to take further action as appropriate to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability.”

CNBC’s Steve Liesman who had previously been of the opinion that the Fed is on hold took the above excerpt to mean that additional stimulus is now on the way. Thus far, the market doesn’t seem to agree with Liesman:

 

 

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