Wednesday, April 27, 2011

Bernanke Press Briefing

Some people have asked what Bernanke said today at the first ever Federal Reserve Chairman's press conference after a FOMC meeting.  The statement of the FOMC meeting had no surprises and even included the "extended period" phrase and sees inflation and unemployment as transitory.

The press conference began with a reprise of the statement and of economic projections.  In answering questions, Bernanke always focused on the "medium term".  Nothing surprising but it does reiterate his view of the economy and recovery from th4e financial crisis.

The full press conference including questions and answers can be watched and heard in full here.

Update 4/28/2011:  The economist Tom Duy takes Bernanke to task for too much emphasis on inflation and little regard for unemployment.

CalculatedRisk sees QE2 as just ending not tapering off, no chance of QE3 with the statements on inflation and unemployment, and interest rates not likely to go up until middle of 2012.

Krugman dismisses Bernanke's concerns about inflation and questions Bernanke's understanding of how serious the unemployment problem is.

Marshall Auerback provides an assessment of QE2 as counterproductive and destructive of the Middle Class.

The Australian economist Bill Mitchell rips Bernanke for his inflation fears, agreement with the S&P deficit warning, and finds the unemployment projections, despite remaining high, as optimistically unrealistic.

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