Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Bernanke says rates to stay low for "extended period"
Reuters via Fidelity.com ^ | April 14, 2010 | Pedro Nicolaci da Costa

Posted on 04/14/2010 12:14:59 PM PDT by mlocher

WASHINGTON (Reuters) - A moderate U.S. economic recovery is likely to warrant very low interest rates for a long time, Federal Reserve Chairman Ben Bernanke testified on Wednesday.

Refusing to rule out the risk of a "double-dip" recession, Bernanke told lawmakers inflation is not an immediate concern, giving the Fed room to maintain its highly stimulative policies.

"The Federal Open Market Committee has stated clearly that they currently anticipate that very low, extremely low rates will be needed for an extended period," Bernanke said in response to questions from lawmakers of the Joint Economic Committee.

However, he stressed that this commitment was based upon certain conditions in the economy, including underused productive capacity, high unemployment and anchored inflation expectations.

"If those conditions cease to hold and we anticipate changes in the outlook then of course we will respond to that," Bernanke added.

He said inflation figures remain subdued, and long-term inflation expectations remain contained. A government report on Wednesday showed U.S. consumer prices climbed 2.3 percent in March compared with a year ago. They rose just 1.1 percent when food and energy were excluded, the smallest increase in more than six years.

Bernanke said the risk of a renewed contraction was "not negligible" but the threat had receded in recent months. He said growth was still weighed down by weakness in the construction sector and battered state and city budgets.

(Excerpt) Read more at news.fidelity.com ...


TOPICS: Business/Economy; Government
KEYWORDS: bernanke; fed; rates; recovery
I watched Bernanke's testimony today. To me, the most important thing he told Congress was that they needed to get the deficit under control. He said that US debt would be 100% of US GDP by the end of the decade.

Naturally, Reuters missed the key part of Bernanke's remarks.

1 posted on 04/14/2010 12:14:59 PM PDT by mlocher
[ Post Reply | Private Reply | View Replies]

To: mlocher

Good, let go sue the credit card companies for usury.


2 posted on 04/14/2010 12:28:55 PM PDT by edcoil (If I had 1 cent for every dollar the government saved, Bill Gates and I would be friends.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: mlocher; ding_dong_daddy_from_dumas; stephenjohnbanker; DoughtyOne; genetic homophobe; FromLori; ...

Yep, till after this year’s election.

That is the payoff for Bernake’s reconfirmation AND for a banking bill that gives the Federal Reserve power to bailout and takeover banks without prior congressional authority.

After that taxes and interest rates go up and Obama blames the Republicans after their big win for screwing up his economy.


3 posted on 04/14/2010 12:31:21 PM PDT by sickoflibs ( "It's not the taxes, the redistribution is the federal spending=taxes delayed")
[ Post Reply | Private Reply | To 1 | View Replies]

To: mlocher

The Fed can influence interest rates but they are ultimately set by the open market!


4 posted on 04/14/2010 12:31:40 PM PDT by SonOfDarkSkies (Obama est aliene!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: mlocher
Its not spending, its an investment! You guys just don't see the big picture, Step 1) Bankrupt country through deficit spending 2) ? 3) Save the union! The underwear gnomes of Obama's fiscal policy!
5 posted on 04/14/2010 12:32:51 PM PDT by Thurston_Howell_III (I was a billionaire until the great depression, and I lost it all, now I'm just a multi-millionaire.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: mlocher
commitment was based upon certain conditions in the economy, including underused productive capacity, high unemployment

I guess Ben can slip it into autopilot then, since the s_ck economy appears to stretch to the horizon. Good news for the traders. Maybe we should all become traders. Might be the only jobs left besides prezeedent that is.

6 posted on 04/14/2010 12:33:52 PM PDT by throwback
[ Post Reply | Private Reply | To 1 | View Replies]

To: edcoil
Good, let go sue the credit card companies for usury.

You mean Obama's credit card legislation last year still means we have to actually pay our credit cards?

7 posted on 04/14/2010 12:34:04 PM PDT by mlocher (USA is a sovereign nation)
[ Post Reply | Private Reply | To 2 | View Replies]

To: SonOfDarkSkies

Yes, the open market sets them. Rates have started to creep up just a little already. With the way things are economically right now and the way BHO and company are spending like there is no tomorrow I don’t think they are going to be able to artificially suppress the interest rates for very long.


8 posted on 04/14/2010 12:36:52 PM PDT by Jack Hydrazine
[ Post Reply | Private Reply | To 4 | View Replies]

To: Thurston_Howell_III

What are underwear gnomes? I have never heard of them before. It must be a special breed of gnomes specializing in politics, right?


9 posted on 04/14/2010 12:38:05 PM PDT by Jack Hydrazine
[ Post Reply | Private Reply | To 5 | View Replies]

To: mlocher
Run those printing-presses!
10 posted on 04/14/2010 12:43:34 PM PDT by E. Pluribus Unum (FYBO: Islam is a religion of peace, and Muslims reserve the right to kill anyone who says otherwise.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Thurston_Howell_III

“Its not spending, its an investment!”

Exactly. We will “grow out of the deficit”.

Remember that one?


11 posted on 04/14/2010 12:48:27 PM PDT by Shermy
[ Post Reply | Private Reply | To 5 | View Replies]

To: E. Pluribus Unum
Run those printing-presses!

Drats. I thought that chug-chug-chug noise was the sound of oil drilling that followed Obama's announcement. I guess I was wrong.

12 posted on 04/14/2010 12:49:56 PM PDT by mlocher (USA is a sovereign nation)
[ Post Reply | Private Reply | To 10 | View Replies]

To: mlocher
They rose just 1.1 percent when food and energy were excluded

Yea. No one eats or puts gas in their car or heats their house.

13 posted on 04/14/2010 1:00:06 PM PDT by GUNGAGALUNGA (Democratus Suckus Teatus is the Latin root for Democrat and it means to tax)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Jack Hydrazine
That's my thinking also!

I am not surprised rates are low at present because consumer and corporate borrowing is nil. Same can't be said for the government.

What's got me stumped is the equities rally. The fundamentals don't support it and the future looks bleak (unless you're in India or China).

There was a time shortly ago that I thought the equities markets were looking beyond Obama and discounting that surge back to the present. But with all Obama has done in the last few weeks (his nuke pact with Russia, his treatment of Israel, the HCB, etc., etc.), I don't think he is going to let go of the reins of office willingly.

He's a full-blown tyrant!

14 posted on 04/14/2010 1:03:02 PM PDT by SonOfDarkSkies (Obama est aliene!)
[ Post Reply | Private Reply | To 8 | View Replies]

To: mlocher

Bring back 20% rates!!!!


15 posted on 04/14/2010 1:03:43 PM PDT by dalereed
[ Post Reply | Private Reply | To 1 | View Replies]

To: mlocher

If banks can borrow money from the Fed for nothing and then turn around and computer whiz up some money trades overnight why the hell should they bother with actually going through the trouble of filling out all the papers etc. for a frickin home loan and then lose sleep over the potential that the deadbeats the government made them loan it to, don’t pay and squat for a coupla years? What incentive?


16 posted on 04/14/2010 1:04:12 PM PDT by Gaffer ("Profling: The only profile I need is a chalk outline around their dead ass!")
[ Post Reply | Private Reply | To 1 | View Replies]

To: Gaffer

Look at the JPM earnings report. Most of it came from trading and securities revenue. When you look at the traditional boring banking stuff like making and servicing loans, it was something a lot less spectacular.


17 posted on 04/14/2010 1:07:19 PM PDT by garbanzo (Government is not the solution to our problems. Government is the problem.)
[ Post Reply | Private Reply | To 16 | View Replies]

To: garbanzo

Like I said, pretty much cleaner (less work) in making profits and lots less headache isn’t it?


18 posted on 04/14/2010 1:08:49 PM PDT by Gaffer ("Profling: The only profile I need is a chalk outline around their dead ass!")
[ Post Reply | Private Reply | To 17 | View Replies]

To: Jack Hydrazine

They are famous for their business model on how to get rich stealing underpants: Phase 1: Collect Underpants
Phase 2: ?
Phase 3: Profit

The joke obviously being that the key phase is missing. Much like our “dear” leaders plans to remake America in his image.


19 posted on 04/14/2010 1:39:07 PM PDT by Thurston_Howell_III (I was a billionaire until the great depression, and I lost it all, now I'm just a multi-millionaire.)
[ Post Reply | Private Reply | To 9 | View Replies]

To: SonOfDarkSkies

I honestly think the equities rally is based more on the Balance Sheets of these companies hoarding so much cash. The cash assets are weighting the models toward buy.


20 posted on 04/14/2010 1:39:07 PM PDT by Thurston_Howell_III (I was a billionaire until the great depression, and I lost it all, now I'm just a multi-millionaire.)
[ Post Reply | Private Reply | To 14 | View Replies]

To: Thurston_Howell_III

LOL! That’s hilarious!


21 posted on 04/14/2010 1:45:24 PM PDT by Jack Hydrazine
[ Post Reply | Private Reply | To 19 | View Replies]

To: Thurston_Howell_III
Very interesting point!

I haven't been scouring the balance sheets lately or even considering the acquisition potential of various listed companies.

22 posted on 04/14/2010 2:39:50 PM PDT by SonOfDarkSkies (Obama est aliene!)
[ Post Reply | Private Reply | To 20 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson