The Federal Open Market Committee (FOMC) meeting ended today (Wednesday) with word that the Fed plans to the stay the course on QE for now, backtracking from earlier hints it might begin tapering this fall.
With Ben Bernanke prepared to step down as Federal Reserve chairman within the next year, the human resource debacle of locating the next Federal Reserve chair is underway.
If you wanted a clear picture of Federal Reserve strategy from the Ben Bernanke testimony to Congress this week, you were disappointed.
Periodically, each Federal Reserve Bank gathers anecdotal information on current economic conditions in its geographic district.
Banks take into consideration the outlook of regional Fed bank directors, interviews with key business contacts, economists, market experts, and other sources.
There’s a key market-moving event this week investors can’t miss: the semi-annual Ben Bernanke monetary policy testimony before Congress on Wednesday (House) and Thursday (Senate).
Congressional legislation known as Humphrey-Hawkins (now expired) required the Federal Reserve’s Open Market Committee to report to Congress on both the state of the U.S. economy and monetary policy twice a year (February and July). The Fed Chairman testifies before Congress in conjunction with the report.
Just this week, the Wall Street Journal reported that former Treasury Secretary and Harvard
President Larry Summers is “hell-bent” on becoming the next U.S. Federal Reserve Chairman.
The more important issue, however, is whether Americans should want Summers involved in such a prominent role in the global economy.
Although you might think the markets simply respond any time Ben Bernanke sneezes, his “cold cycle” is not one of the indicators that will spell the slowing and eventual cessation of the printing press at the Fed.
There actually is a mathematical formula used by the Federal Reserve to determine when to stop the presses.
After President Barack Obama all but fired U.S. Federal Reserve Chairman Ben Bernanke in a recent television interview, everyone’s been trying to figure out who the president will name as the next Fed chief next year.
U.S. Federal Reserve Chairman Ben Bernanke’s announcement last week that the Fed would like to start curbing its QE3 bond-buying program triggered a stock market sell-off that erased two months’ worth of gains in two days.
Last week, President Obama indicated that Federal Reserve Chairman Ben Bernanke will likely step down in January when his term ends. After taking office in 2006 under then-President George W. Bush, Bernanke has facilitated the greatest economic transfer of wealth from America’s grandchildren to banks and foreign nations in the name of sustaining the Keynesian vision of the economic stimulus.