Tweet
snip
"The bulk of the evidence indicates that resource slack is now substantial," Bernanke wrote. "I continue to expect slack resources, together with the stability of inflation expectations, to contribute to the maintenance of low inflation in the period ahead." (wishful thinking - Fla1)
The Fed's pronouncement on Wednesday could offer some sort of nod to a recent improvement in the economic data, particularly in light of a considerable deceleration in the pace of job losses last month.
Even so, analysts suspect the Fed will not yet overturn its commitment to keep rates at an exceptionally low level for an "extended period."
Financial markets have earned the Fed some reprieve. Oil prices, which touched $82 a barrel in late October, have since sunk closer to $70. At the same time, the dollar, whose rapid decline was raising concerns within the central bank, has staged a solid rebound.
Still, a report on Tuesday showed U.S. producer prices jumped 1.8 percent, sparking sell-offs in both stocks and government bonds.
"The bulk of the evidence indicates that resource slack is now substantial," Bernanke wrote. "I continue to expect slack resources, together with the stability of inflation expectations, to contribute to the maintenance of low inflation in the period ahead." (wishful thinking - Fla1)
The Fed's pronouncement on Wednesday could offer some sort of nod to a recent improvement in the economic data, particularly in light of a considerable deceleration in the pace of job losses last month.
Even so, analysts suspect the Fed will not yet overturn its commitment to keep rates at an exceptionally low level for an "extended period."
Financial markets have earned the Fed some reprieve. Oil prices, which touched $82 a barrel in late October, have since sunk closer to $70. At the same time, the dollar, whose rapid decline was raising concerns within the central bank, has staged a solid rebound.
Still, a report on Tuesday showed U.S. producer prices jumped 1.8 percent, sparking sell-offs in both stocks and government bonds.
