Preparing for the Likelihood of Fed Action
Fed Chairman Ben Bernanke's testimony before Congress today strongly suggests that new monetary stimulus is coming. Here is how I am approaching the increasing possibility of Fed action.
Initially, Bernanke's testimony was greeted negatively by the markets. The Dow dropped 125 points in the 45 minutes after the chairman's prepared remarks were released. However, as I've said in the past, given how politically charged monetary policy is today, it would be very surprising for Bernanke to explicitly call for additional monetary measures in front of a potentially hostile audience, lest he put the Fed even deeper into the political realm....690 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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