Guidant Financial Group Blog

Bernanke's Speech Doesn't Have Expected Effect

Friday
Fed Chairman Ben Bernanke spoke this morning in a much anticipated meeting before global policy makers about the U.S. economy and the Fed's response. The Fed announced its decision to put stimulus into their upcoming discussions.

The Wall Street Journal quoted Bernanke saying, "Although important problems certainly exist, the growth fundamentals of the United States do not appear to have been permanently altered by the shocks of the past four years." Read the full article here.

Bernanke also noted that, "The Committee will continue to assess the economic outlook in light of incoming information and is prepared to employ its tools as appropriate to promote a stronger economic recovery in a context of price stability." Read The Street's full article here.

Many anticipated the speech to have an immediate effect on the stock market. But CNN Money reported that, "Immediately following the speech, stocks sold off broadly and sharply, only to recoup all those losses fairly quickly." Read the full article here.

Bernanke also announced that their discussions on stimulus will begin at the Fed's upcoming September meeting.


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posted by Garrett @ Guidant @ 9:23 AM

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