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Bernanke Acknowledges Fed Policy Failure; Stocks Rally

Monday, March 26, 2012 - 12:38 PM
Bernanke Acknowledges Fed Policy Failure; Stocks Rally - Yahoo! Finance

 
Stocks rallied Monday based on comments that Fed Chair Ben Bernanke made at the National Association for Business Economics spring conference. Long-term interest rates however went up.

The takeaway that got buried was that the Fed Chair admitted that the economy remained weak and there has been no significant recovery yet. In relation to job gains, Bernanke specifically stated, 'we have not seen that in a persuasive way yet.' He followed up by saying that without much stronger GDP growth, the unemployment rate was unlikely to fall much further.

 

10
StewieStewie56 posts since
Jan 18, 2010
Rep Points: 318
1. Monday, March 26, 2012 - 2:29 PM
Sounds logical to me. The economy is essentially treading water so the equity markets rally. Talk about the return of "irrational exuberance". Alan Greenspan must be back working at the Fed.
2
ShorebreakShorebreak2,695 posts since
Apr 6, 2010
Rep Points: 14,612
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