Federal Reserve Chairman Ben Bernanke offered a mixed outlook for the economy in a speech today before the House Committee on the Budget. He said that although economic recovery has continued at a moderate pace, “significant restraints on the pace of the recovery remain.” Those restraints include continued strains on the housing market and cuts in employment and construction due to pressures on state and local budgets. Although he noted the slight uptick in employment in May, Bernanke said “a significant amount of time will be required” to restore jobs back to pre-2008 levels. (more…)
Posts Tagged ‘Ben Bernanke’
Economic outlook: A mixed bag
Wednesday, June 9th, 2010Drama ahead in 2010?
Wednesday, December 30th, 2009It’s that time again, when all of the pundits and analysts weigh in with their predictions for the new year, and, as we leave “the aughts” behind, the new decade. The past two weeks have been chockablock with best of/worst of ’09 lists, events of the year, people of the year, etc. (Time magazine’s choice for Person of the Year for 2009, Fed Chairman Ben Bernanke, actually ties in very nicely with Futures’ January Markets piece, “Interest rate policy: Under pressure.”) The consensus among many pundits is that the coming decade HAS to be better than the one we’re leaving behind. (more…)
Dollars for sale
Friday, November 20th, 2009It might have been more than a little embarrassing for President Obama that the U.S. dollar was making 15-months lows just as he was visiting China in part to reassure the Chinese that their massive investment in U.S. Treasuries were secure. China is concerned that the massive holdings of dollars will continue to lose value. But threats of disinvestment holds a knife to their own neck as much as it does ours so they will likely continue to buy our debt.
Dollar paradox
Tuesday, November 17th, 2009In his speech before the Economic Club of New York yesterday, Fed Chairman Ben Bernanke expressed some conflicting thoughts about dollar policy. He said that the Fed is “attentive to the implications of changes in the value of the dollar.” At the same time, Bernanke reiterated his stance that economic conditions will warrant low levels of the Fed funds rate “for an extended period.” So it appears the Fed will maintain its low interest rate policy, which, in theory, could keep the dollar weak. This seems like a contradiction in terms.
More Fed doubletalk
Wednesday, October 14th, 2009Speaking late last week in Washington Federal Reserve Board Chairman Ben Bernanke hinted that rate hikes may be on the way. Bernanke said, “When the economic outlook has improved sufficiently, we will be prepared to tighten the stance of monetary policy and eventually return our balance sheet to a more normal configuration.”
Not exactly a bold statement but a necessary one as it became imperative to say something supportive of the dollar after last week’s weakness. It has not lasted as the dollar made a new low for the move today.
Ben, put your rep where your mouth is
Wednesday, September 23rd, 2009By now you have all heard that Federal Reserve Board Chairman Ben Bernanke said that the recession is probably over following a speech last week.
Those words probably don’t mean a lot to those who have lost their jobs or those who will soon lose their jobs as the economy continues to shed jobs, albeit at a slower pace than in the heart of this recession.
Back patting and buck passing
Monday, August 24th, 2009While reading over Federal Reserve Board Chairman Ben Bernanke’s comments from the symposium in Jackson Hole, Wyoming last Friday a few things stick out. First, he follows a disturbing trend we have noted here for some time that dates the credit crisis to September 2008 instead of much earlier; next, he supports the popular notion that a slower rate of decline equals growth and throughout he is quite loose with details surrounding certain events. Most disturbing is he takes credit for avoiding a disaster but fails to take responsibility for anything. Bernanke pats himself and others on the back for averting a disaster that 1) he was at least partially responsible for creating and 2) he assured us was not going to happen. Both Bernanke and former Treasury Secretary Hank Paulson were on record as saying the worst of the credit crisis was behind us while it was staring us in the face.
Muzzled
Thursday, April 23rd, 2009Transparency is one of the basic tenets of capital markets. Publicly-traded companies have a legal obligation to disclose material facts about the value of their company. Unless the Federal Reserve and Treasury Department muzzle them, that is. The Wall Street Journal reported today that Bank of America chief executive Ken Lewis was prompted by Federal Reserve Chairman Ben Bernanke and then-Treasury Secretary Henry Paulson not to discuss the financial woes of Merrill Lynch as Bank of America negotiated its government-backed purchase of Merrill. (more…)
Speechifying
Tuesday, April 14th, 2009Federal Reserve Chairman Ben Bernanke is providing some answers (sort of) about the current worldwide state of economic turmoil. Today USA Today published a conversation with Bernanke ahead of his speech on the economy at Moorehouse College.
Bailout verdict? Not good
Tuesday, February 10th, 2009The verdict for the new bailout plan is in, and it stinks. Treasury Secretary Timothy Geithner announced the new $1.5 trillion financial rescue plan this morning, and the Dow Industrials promptly dropped 300 points. The Senate then approved the stimulus plan by a vote of 61 to 37. The massive market sell-off continued throughout the day, with stock indexes dropping 4-5% after Federal Reserve Chairman Ben Bernanke discussed economic rescue plans with the House of Representatives, according to Market Watch. Headed into the close, the Dow was hovering around 7,800. Ouch.
