Ben Bernanke, dope peddler:
“I emphasize that, because our asset purchases depend on economic and financial developments, they are by no means on a preset course,” he told the House Financial Services Committee in a presentation that started 30 minutes late. “On the one hand, if economic conditions were to improve faster than expected, and inflation appeared to be rising decisively back toward our objective, the pace of asset purchases could be reduced somewhat more quickly.”
Bernanke’s assurance that the Fed will change the bond purchases, a policy known as “quantitative easing,” or QE, as economic conditions dictate is aimed largely at investors. Financial markets plunged in May after guidance by Bernanke and the Federal Open Market Committee caused confusion over when the bank would start scaling back its bond purchases.
“Even though Fed Chairman Ben Bernanke just repeated the party line in a slightly different way in his semi-annual testimony to Congress today, the message that the tapering of [QE] is not set in stone and that the end of the asset purchases won’t be immediately followed by higher interest rates is increasingly getting through to the markets,” wrote Paul Dales, senior U.S. economist with Capital Economics
Easing now, easing tomorrow, easing forever!
And if you’re tired of reading that joke, you should try typing it.