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23 May 2013
Flash: Reading between the lines in the Bernanke testimony – Investec
FXstreet.com (Barcelona) - In his testimony to the Joint Economic Committee (JEC) last night Bernanke failed to provide any hints that the Fed was imminently about to make any adjustments to it’s current pace of asset purchases of $85bn a month.
According to Lee McDarby, Corporate Treasury at Investec, “Whilst he mentioned that the Fed could take a step down in the pace of bond purchases in the next few meetings, this was only if the Fed were to see continued job market improvement and confident in it being sustained.”
“Reading into both Bernanke’s comments to the JEC and the FOMC minutes also released last night the FOMC still sees its current pace of asset purchases as being appropriate given the current outlook, with no real change in this opinion expected until later in the year.” he adds.
According to Lee McDarby, Corporate Treasury at Investec, “Whilst he mentioned that the Fed could take a step down in the pace of bond purchases in the next few meetings, this was only if the Fed were to see continued job market improvement and confident in it being sustained.”
“Reading into both Bernanke’s comments to the JEC and the FOMC minutes also released last night the FOMC still sees its current pace of asset purchases as being appropriate given the current outlook, with no real change in this opinion expected until later in the year.” he adds.