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Entries in Economic Club of Minnesota (1)

Thursday
Sep082011

Fed’s Ben Bernanke Still Mum About Stimulus

Alex Wong/Getty Images(MINNEAPOLIS) -- Federal Reserve Chairman Ben Bernanke delivered his usual Sphinx-like remarks to the Economic Club of Minnesota on Thursday, revealing little detail on how the central bank could stimulate the U.S. economy.

The chairman said the Fed was “prepared to employ” stimulus at the next meeting of the Federal Open Market Committee (FOMC) Sept. 20 to 21.  But he did not say what he would do.

He also described what economists have been saying for months: the country has weak consumer demand, while the business sector is stronger.

“Bernanke issued his second consecutive awaited speech in which he more or less said nothing,” said Guy LeBas, Janney Capital Markets’ chief fixed income strategist.

LeBas said he expected the Federal Reserve chairman to be restrained in his policy implications. The Fed chair didn’t allude to the recent reported disagreement among the Federal Reserve Board of Governors about how to respond to the weak economy.

“The Committee also continues to anticipate that inflation will moderate over time, to a rate at or below the two percent or a bit less that most FOMC participants consider to be consistent with the Committee’s dual mandate to promote maximum employment and price stability,” Bernanke said.

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