Thursday, April 28, 2011

Bernanke to Press: Not enough Progress to Change Course

It was a news conference held by a central banker, full of empty words and invented phrases, signifying nothing new. A politician couldn’t have done better.

The Federal Reserve’s news conference today was a first for the notoriously secretive institution. It underscored demand for more scrutiny of the Fed following its asset purchase programs over the past two and a half years.

Federal Reserve Chairman Ben Bernanke used this news conference to affirm the Fed’s outlook on the economy, nothing the need to keep interest rates near zero for “an extended period.”

That’s Fed-speak for “more of the same.”

Rates aren’t going anywhere, and the Fed won’t shrink its balance sheet when its asset-purchase program ends in June.

As for inflation, it’s “transitory,” according to Bernanke — meaning he expects the recent increase to fade over time.

The numbers at the grocery store and the gas pump tell a different story........CONTINUED

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