Today, Ben Bernanke, the FOMC chair, conducted his second post FOMC announcement speech. Here are a few interesting comments:
- Ben held firm that no further easing (QE3 or the like) was on the table currently and mentioned very small amounts of inflation can be seen (This echos Richard Fisher’s thoughts a few weeks earlier.)
- In answer to a NY Times question concerning Greece, Ben stated that he has checked with our current banks and they have little exposure directly, possibly some exposure indirectly with other banks who might have exposure.
- Committee members expect a 5.5% long term unemployment rate. We would view this as the new floor unemployment rate.
- Bernanke believes we are two or three meetings away from raising/tightening, however, later in the discussion he stated if inflation shows its ugly head the Fed will not be afraid to tighten even if unemployment is still high (This again echos Mr. Fishers discussion.)
Over all another good grade via a live post FOMC announcement interview and no major changes, only the above nuggets of clarity.
Have a Great Rest of the Day!
JK
