Feb 26, 2013
Stocks have completely erased their early gains.
Currently, Federal Reserve Chairman Ben Bernanke is testifying before the Senate banking committee. According to his prepared remarks, is looks like he’s maintaining his dovish slant. But during the Q& A, Fed-watchers will be looking for any clues on how the Fed plans to unwind easy monetary policy and allow interest rates to rise again.
Here’s TD Securities Eric Green on Bernanke’s remarks:
Bernanke is staying on message. He mentions that the Fed has the tools for exit and that distortions may arise from QE, but that is merely stating the obvious within a policy that few, including Bernanke, fully understand. We also suspect that it is intended to soothe anxiety among some that see persistent QE has more cost than benefits. Bernanke argues just the opposite. Further easing benefits outweigh the costs, and the tone of his remarks indicate that it remains far too premature to contemplate the end of asset purchases.
Earlier this morning, we learned that U.S. home prices climbed by 6.8 percent year-over-year in December. This was higher than the 6.6 percent gain expected.
This article was posted: Tuesday, February 26, 2013 at 11:56 am