Karim writes:

Initial claims fall 14k to 442k; with downward revisions to past few weeks allowing 4wk avg of initial claims to move to 453.8k; the lowest since 9/08.

This is the part that Bernanke omitted in today’s testimony that was included in his Feb 10 testimony.

“I currently do not anticipate that the Federal Reserve will sell any of its security holdings in the near term, at least until after policy tightening has gotten under way and the economy is clearly in a sustainable recovery. ”

Now just has sequencing more open-ended:

“In any case, the sequencing of steps and the combination of tools that the Federal Reserve uses as it exits from its currently very accommodative policy stance will depend on economic and financial developments and on our best judgments about how to meet the Federal Reserve’s dual mandate of maximum employment and price stability.”

One Response

  1. Just to clarify, what he is saying is that he has no idea what he is going to do, he is making it all up as he goes along, depending on the best cover available.
    “I’ll do the right thing at the right time, even though I can’t tell you what that right thing may be, nor how to identify when the right time may be coming along.
    I studied the Great Depression, so I’ll know it when I see it.
    As they say in banking, which we are trying to save in order to maintain this jobless and wageless recovery, it depends.”
    Kohn is out there admitting that they have not done adequate research on preventing what he call “bubbles”.
    But, as we now can all see, they didn’t do too well on preventing the “busts” either.
    I’m starting to think that it’s getting pretty shaky inside the Fed about now.
    I only hope the “Jig-is-Up-Task-Force” is well underway.

Leave a Reply

Your email address will not be published. Required fields are marked *