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19 Jun 2013
Flash: Bernanke to weigh in on incoming economic news – NAB
FXstreet.com (New york) - According to the NAB Research Team, “We’d suggest that the prevailing view going into Wednesday's FOMC statement and press conference is that given a generally respectable but hardly stellar set of incoming economic data since the April FOMC meeting, Mr. Bernanke is not going to push back hard against his May 20th comments.”
Bernanke to weigh in on incoming news
Bernanke is nevertheless likely to stress that any such move still remain dependent on the incoming economic news, and is unlikely to give an expected date at which the process may commence (unless of course, a decision is made today to start scaling back QE – unlikely in our view, since that would undoubtedly amount to a fresh shock for markets).
At the same time, Bernanke looks slated to suggest that starting ‘tapering’ doesn't mean it won’t stop (or couldn’t even be reversed), and too that starting to wind down its bond purchase program still means that policy is being eased not tightened and that even ending QE is in no way an indication that rates could start to be raised anytime soon. He may in this respect indicate that the Fed’s new economic projections remain consistent with rates being on hold at least through late 2014.
Bernanke to weigh in on incoming news
Bernanke is nevertheless likely to stress that any such move still remain dependent on the incoming economic news, and is unlikely to give an expected date at which the process may commence (unless of course, a decision is made today to start scaling back QE – unlikely in our view, since that would undoubtedly amount to a fresh shock for markets).
At the same time, Bernanke looks slated to suggest that starting ‘tapering’ doesn't mean it won’t stop (or couldn’t even be reversed), and too that starting to wind down its bond purchase program still means that policy is being eased not tightened and that even ending QE is in no way an indication that rates could start to be raised anytime soon. He may in this respect indicate that the Fed’s new economic projections remain consistent with rates being on hold at least through late 2014.