Bernanke To The Rescue?
Bernanke spoke this morning, and for a while it really looked like he came to the rescue. The market surged over 150 points, but it has since faded as sellers reemerged.
I think what the market is saying is that if Bernanke is willing to admit that the economy needs further cuts and much more stimulus, why wait 3 weeks?!? Give us the cut now! The financials need it now. Consumers need it now. Get going.
Anyway, here are the highlights of his comments:
- Bernanke says additional policy easing may well be necessary
- Bernanke says Fed stands ready to take "substantive additional action" to support growth
- Bernanke prepared to act in a decisive and timely manner
- Bernanke says December job data 'disappointing'
- Bernanke says Fed paying particular attention to housing
- Bernanke says 2008 outlook worsended, risks 'more pronounced'
- Oil prices, lower equities, housing likely to weigh on 2008 consumer spending, says Bernanke
- Bernanke says T.A.F. auctions to continue as long as necessary
- Bernanke says Fed sees "considerable evidence" bank lending to firms, households now more restrictive
- Bernanke says despite impact of write downs on bank profits, share prices, banking system sound