From Bruce Krasting:
Jon Hilsenrath, at the WSJ
, must have had a phone call with Ben Bernanke on Saturday. Accordingly, Jon put an article out just in time to influence the market on Monday morning. The headline says it all:
Fed Takes Break To Weigh Outlook
No doubt, Bernanke is watching the price of crude and the tape is telling him his inflation forecast is no good. The leak this evening is just Ben's way of hinting to the market that he understands where we are on inflation, and he is not going to stir the pot anymore than he has.
article indicates that the Fed is on hold for at least three months, until June. Moreover, Bernanke can't do anything big on the monetary front within five months before a national election. Therefore, the next legitimate time for another LSAP/QE is...
Read full article...
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