THE FED Bernanke feels misunderstood,
Verfasst: 01.05.2006 22:27
WASHINGTON (MarketWatch) - CNBC anchor Mario Bartiromo said Monday that Federal Reserve Chairman Ben Bernanke told her that the media and the markets had misinterpreted his words last week as a signal that the Fed would pause after one more rate hike.
Bartiromo said Bernanke told her that he intended to indicate that the Fed is flexible, not to brand himself as a dove on monetary policy. Bernanke apparently made the comments at the White House Correspondents Dinner, an annual gathering of top media and politicians, on Saturday night.
Financial markets sold off on Bartiromo's comments. Bond yields leaped higher and stocks fell. See Market Snapshot.
Last Thursday, Bernanke told the congressional Joint Economic Committee that the Federal Open Market Committee would pause at some point to reassess the impact of its steady stream of rate hikes over the past 22 months that brought the federal funds rate from a four-decade low of 1% to 4.75% currently.
Such a pause should not be seen as ruling out further rate hikes, Bernanke said
Bartiromo said Bernanke told her that he intended to indicate that the Fed is flexible, not to brand himself as a dove on monetary policy. Bernanke apparently made the comments at the White House Correspondents Dinner, an annual gathering of top media and politicians, on Saturday night.
Financial markets sold off on Bartiromo's comments. Bond yields leaped higher and stocks fell. See Market Snapshot.
Last Thursday, Bernanke told the congressional Joint Economic Committee that the Federal Open Market Committee would pause at some point to reassess the impact of its steady stream of rate hikes over the past 22 months that brought the federal funds rate from a four-decade low of 1% to 4.75% currently.
Such a pause should not be seen as ruling out further rate hikes, Bernanke said