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Bernanke: It 'May Be Some Time' Before Monetary Policy Returns To Normal

Wednesday, November 20, 2013 - 6:20 AM
"The economy has made significant progress since the depths of the recession," he said. "However, we are still far from where we would like to be, and, consequently, it may be some time before monetary policy returns to more normal settings.

"I agree with the sentiment, expressed by my colleague Janet Yellen at her testimony last week, that the surest path to a more normal approach to monetary policy is to do all we can today to promote a more robust recovery."

Ben Bernanke Monetary Policy Speech - Business Insider
ShorebreakShorebreak2,696 posts since
Apr 6, 2010
Rep Points: 14,620
1. Wednesday, November 20, 2013 - 9:27 AM
I see in other stories that he actually said somewhat more ****ing things: that short term interest rates might remain near zero until "well after" unemployment drops to 6.5%. 

Fed Chief Hints at Prolonged Low Rates - Yahoo Finance

That 6.5% figure is the previous number at which the Fed said rates likely would start to be hiked. 
me1004me1004374 posts since
Jan 16, 2010
Rep Points: 2,603
2. Wednesday, November 20, 2013 - 3:14 PM
"Introducing so-called state-contingent guidance, the Committee announced for the first time that no increase in the federal funds rate target should be anticipated so long as unemployment remained above 6-1/2 percent and inflation and inflation expectations remained stable and near target.  This formulation provided greater clarity about the factors influencing the Committee's thinking about future policy and how that thinking might change as the outlook changed."

"In particular, even after unemployment drops below 6-1/2 percent, and so long as inflation remains well behaved, the Committee can be patient in seeking assurance that the labor market is sufficiently strong before considering any increase in its target for the federal funds rate."

"The FOMC remains committed to maintaining highly accommodative policies for as long as they are needed."

 In sum, no clarity.  Fed. will change rate/QEs as they wish (i.e., any time) with no prior notice.  Not earlier; not later.  Make no mistake about it:D

51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,427