US markets soar as Fed chief raises hope

From Investment and Business News

Some people blame plain-speaking Ben Bernanke for the recent market turmoil. The problem is this. The Fed governor likes to tell it like it is. If he is worried about inflation, he tells us. If he is unsure, he sends out mixed messages, unlike the previous head man at the Fed, Alan Greenspan, who created this veneer of being an all-seeing sage of economics. There’s nothing wrong with being uncertain. Inflation is an awkward beast.

The truth is that Greenspan didn’t have any better idea than Bernanke, it’s just that he kept his doubts to himself. They used to say he liked to keep the markets guessing but, maybe, he just kept quiet because he didn’t know.

Yesterday, though, Mr Benrnanke, seemed to come clean, and to have nailed his colours firmly to the dove camp. He said ‘Our baseline forecast is for moderating inflation.’ The media jumped on the dove bandwagon, the FT headlined, for example, "Fed chief says inflation expected to fall’, while CNN Money said "Bernanke: Inflation under control. [...]

for more click here to Investment and Business News