Okay, here is what I read between the lines from Bernanke’s Q&A with the financial press today.
1. Not likely to raise interest rate target until January 2012, so we are at ZERO short term interest rates for a while longer
2. Fed doesn’t feel that inflation is a problem, it’s “transitory”
3. Commodity price increases are “transitory”
4. Dollar is the sacrificial lamb, the Fed is going to let it fall in order to help the economy, exports, employment
That’s what I think his message was.
1. Not likely to raise interest rate target until January 2012, so we are at ZERO short term interest rates for a while longer
2. Fed doesn’t feel that inflation is a problem, it’s “transitory”
3. Commodity price increases are “transitory”
4. Dollar is the sacrificial lamb, the Fed is going to let it fall in order to help the economy, exports, employment
That’s what I think his message was.
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