Bernanke press conference (reverse order)
- It’s over!
- FOMC Participants Central Tendency of PCE inflation @ Year-End 2013-5, LR 1.22% 1.68% 1.88% 2.00% change -0.33% -0.07% -0.05% 0.00%
- Bernanke gives an odd answer to Nikkei reporter, particularly given the Fed’s adoption of failed Japanese economic & monetary policies $$
- Yeah, weird answer. RT @Matthew_C_Klein: “Volatility is linked to the BOJ’s efforts. Seems logical.” Um…
- BB shows his ignorance on the topic of money market funds, a floating NAV will destabilize, and lead to runs on funds
- FOMC Participants Central Tendency Unemployment Rate @ Year-End 2013-5, LR 7.23% 6.60% 6.02% 5.57% Change -0.12% -0.17% -0.19% 0.00% $$
- FOMC Participants Central Tendency Change in GDP @ Year-End 2013-5, LR 2.40% 3.14% 3.19% 2.43% Change -0.13% -0.03% -0.07% 0.00% $$
- BB, markets do not care about the past, they care about the future. Stock levels of bonds r the past, future behavior affects markets now $$
- FOMC Participants Target Federal Funds Rate at Year-End 2013-5, LR 0.26% 0.58% 1.78% 4.01% Change from prior -0.03% 0.03% 0.47% 0.00% $$
- Overview of FOMC participants’ Appropriate Timing of Policy Firming central tendency shrinks by 2 months to 2.3 years
- Bernanke questioned on MBS holdings, denies that the Fed is having a big effect on the market. If so, why buy there for policy reasons? $$
- BB is confused think that holding securities will keep rates low; yields react to changes in expectations of future actions $$
- Cutting off asset purchases at 7% unemployment further clouds the market view of Fed policy; the Fed is far more flexible than that. $$
- BB also refuses to talk about his future at the FOMC, after being asked by a Washington Post reporter. $$
- Bad question from Bloomberg reporter suggesting that the unemployment trigger should be lower. BB gives no much of an answer. $$
- Good question on the rise in real rates from the FT reporter. BB says that he doesn’t get why that happened. $$
- Question on long term interest rates — BB says that is is an improving economy. Points to housing again (the dead cat bounce) $$
- Hilsenrath asks a decent question on punk economic growth. BB responds with housing and State govs & 2 small of a deficit (!) $$ #pleasego