Federal Reserve Chairman Ben Bernanke said Wednesday that central bank policy in the U.S. will stay loose “for the foreseeable future” amid low inflation and high unemployment.
It was off to the races for stocks as a result, with the major indexes pushing to new highs.
Bernanke spoke in Cambridge, Mass., to the National Bureau of Economic Research. But it’s not the first speech of his that investors and market pundits have parsed closely for insights into talk about “tapering” of Fed policy in the coming months.
Bernanke caused waves when he said the Fed likely will reduce its stimulus later this year and end it by mid-2014, with investors worried that the central bank is taking its foot off the gas too soon in regards to its $85 billion monthly bond buying program known as “quantitative easing.”
So is this really news? Charles Sizemore and I don’t think it really is.
And what’s next? Well, we both feel pretty optimistic.
Take look or listen at the video above and find out why.
- Is Bernkane actually preparing us for the END of Fed stimulus here? (USA Today)
- The Fed is of two minds on the end of QE. (NYT)
- Fed minutes suggest no end to stimulus in sight. (FT)
Jeff Reeves is the editor of InvestorPlace.com and the author of “The Frugal Investor’s Guide to Finding Great Stocks.” Write him at firstname.lastname@example.org or follow him on Twitter via @JeffReevesIP.