Fra Zerohedge: Bernanke Fails To Deliver As Chairman Checks To Congress
- *BERNANKE SAYS STAGNATION IN LABOR MARKET IS `GRAVE CONCERN'
- *BERNANKE SAYS FED WILL BOOST ACCOMMODATION AS NEEDED FOR GROWTH
- *BERNANKE SAYS HE WOULDN'T RULE OUT FURTHER ASSET PURCHASES
- *BERNANKE: QE `SIGNIFICANTLY LOWERED LONG-TERM TREASURY YIELDS'
- *BERNANKE SAYS IMPACT OF QE IS `ECONOMICALLY MEANINGFUL'
- *BERNANKE: BIG BOOST IN QE MAY REDUCE CONFIDENCE IN SMOOTH EXIT
Those are the headlines. Here is the disappointing conclusion, which promises nothing new at all. Bernanke takes the wind out of the market's euphoric sails:
"Substantial further expansions of the balance sheet could reduce public confidence in the Fed's ability to exit smoothly from its accommodative policies at the appropriate time.
Even if unjustified, such a reduction in confidence might increase the risk of a costly unanchoring of inflation expectations, leading in turn to financial and economic instability."
