Today's events were right out of a Hollywood script. First we get a slightly better than expected reading on Q2 revised GDP. Then about 30 minutes before Bernarnke's speech, CNBC interviews the most dovish FOMC member, Federal Reserve President James Bullard. He said that a double-dip recession is "not very likely at this point" and predicted growth would pick up in 2011. He also said that any further quantitative easing should be "disciplined." In order to dismiss the rumored split within the FOMC Bullard said Bernanke has the support of "a huge majority" on the Fed's policy-setting Federal Open Market Committee. Just to be sure, CNBC also trotted out ECB's Axel Weber, who's most recent public comments were unusually dovish. Result, a nice rally in the equity markets as the spin masters do it again.
For a closer look at what Bernanke had to say, read here.
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