Friday, May 24, 2013

Bernanke clarity -- there is none

“If we see continued improvement and we have confidence that that is going to be sustained, then we could in -- in the next few meetings -- we could take a step down in our pace of purchases.” - Ben Bernanke

What does this mean? If there is improvement and the Fed believes it can be sustained, then they may reduce the amount purchased. This is as clear as mud. The market reaction was swift. Equities feel so investors do not believe that the economy can run on own at current growth rates. There was more information from the market than from Ben Bernanke.

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