Friday, August 27, 2010

Helicopter Ben Bernake to the Rescue

The Financial Times reports that Wall Street was reassured by Ben Bernake's remarks that the Fed stands by to boost US growth:
Treasury yields rose after Mr Bernanke spoke, as the market had expected an indication of more bond buying or quantitative easing by the central bank.

Richard Volpe, co-head of interest rates at RBS Securities, said: “The chairman has raised the bar for the market, as we can expect more QE only if the economy deteriorates significantly.”"
While Wall Street is comforted by this news, others are worrying about hyperinflation.

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