That is the real news that should be taken away from the Bernanke testimony. But it won't. Watch that spin.
Bet you wont here to many financial channels revisiting this issue they kept bringing up every single day when the economic data was coming in a tad light. Economic data weak! have no fear the fed is going to cut!!!! Economic data strong! have no fear the economy is strong!!!
I find it quite pathetic that anyone in the last 6 months really thought the federal reserve would be cutting rates, if anything the next move is a hike. The bulls are praying for a rate cut, guess that is the next catalyst.
Bernanke watches the Fed Funds contract in order to determine monetary policy. We ought to remain at 5.25% thru the Summer. We'll see what happens then.
yesterday the percent of a rate cut sometime in mid 2007 went from 16% to 20%. They are still anticipating a rate cut. Seems like this is the only MAJOR catalyst to keep this bull market running like it has for the last 9 months.
strange that the eurodollar doesn't seem to reflect this statement. anyone know why it didn't correct after the speech?
net treasury investment flow was negative in december. domestic buying is of foreign treasuries. it apparently isnt newsworthy that the u.s. is pissing cash of over 150 billion a month that overseas buyers didnt finance in december. ie - the us will have to print up another 150-300 billiion in december alone. totally out of control. this happening while housing is tanking and lending standards being tightened. yet the market continues to rise... my assessment is we are in the midst of a massive inflationary liquidity love fest. best played like musical chairs!!! just dont be the last guy standing up when the music stops...