And He shall print for ever and ever. That's right kids, Uncle Ben came to the rescue last night with his most doveish speech of the year (and the competition was fierce!). We went over the Fed Minutes (well, half of them, they were long!) in yesterday's chat (tweeted here) but all that analysis was thrown out the window when Bernanke said: "Both sides of our mandate are saying we need to be MORE accommodative."
- "You can only conclude that highly accommodative monetary policy for the foreseeable future is what's needed in the U.S. economy"
- (Fed Governors) "were concerned that stating an intention to slow the pace of asset purchases…might be misinterpreted as signaling an end to the addition of policy accommodation or even be seen as the initial step toward exit from the (Fed's) highly accommodative policy stance."
- "The Fed is heading toward a possible, and gradual, change in the mix of instruments it is using to help the economy, but that shouldn't be confused with the overall thrust of policy which is highly accommodative."
- "The overall message is accommodation."
It's the LACK of reaction to his statement. Sure the Futures are up…
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