Bernanke versus Berlusconi

by Marilou Long on February 27, 2013

in Credit Crisis,Employment,Foreign Markets,inflation/deflation

The market has been volatile the past week as Italy’s election turmoil has roiled markets in Europe. The DJIA fell 216 on Monday on the hung election in Italy, and then rallied strongly yesterday after Ben Bernanke testified in Congress that the Fed would continue its bond bying program.  From the linked Bloomberg article:

“We do not see the potential costs of the increased risk-taking in some financial markets as outweighing the benefits of promoting a stronger economic recovery,” Bernanke said yesterday in testimony to the Senate Banking Committee inWashington. Inflation is “subdued,” and will probably stay at or below the Fed’s 2 percent goal, he said.

Bernanke pushed back against colleagues on the Federal Open Market Committee who favor curtailing the $85 billion in monthly bond-buying amid concern about the growth of the Fed’s record $3.1 trillion balance sheet. Stocks rose on expectations continued stimulus would fuel the expansion and as reports showed gains in home prices and sales. e Fed’s 2 percent goal, he said.

The CNBC video below discusses Bernanke’s testimony to Congress:

Leave a Comment

Previous post:

Next post: