THE BASIS POINT

This Bernanke Quote Sums It All Up

 

“Monetary policy isn’t going to solve our problems.”

-Ben Bernanke, June 20 post-FOMC press conference

The quote above is probably the most important thing Bernanke said in today’s post-FOMC press conference. This means that if Congress can’t get fiscal policy in order, the U.S. economy will just slog along … and on this note, below are Bloomberg summaries of the Fed’s economic projections. Too optimistic? It all comes back to the quote above and whether Congress (as well as EU policymakers) can get anything done.

$TLT $MBB $ZN_F $ZB_F

 

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Comments [ 1 ]
  1. Dick Lepre says:
    June 20, 2012 at 12:47 pm

    I believe that Bernanke, aliong with almost everyone else, misses the point about money.  85% of broad money is in the private money – money that people have in their accounts.  15% of broad money is the Fed’s work.  What has happened post-Lehman is that the amount of Fed money has increased while the amount of private money has decrease.  The best measure of money supply -M4 Divisa – has declined by 2% since 2008.  This is reported by the St. Louis Fed under the name Monetary Services Indexes (MSI).  My newsletter of this coming Friday will detail this.

    Reply

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