- US economy still far from where we would like it to be, may be some time before Fed policy turns normal
- Agrees with Yellen that surest path to more normal monetary policy is to do all we can to promote robust recovery
- Fed still expect labor market to continue to improve, inflation to move toward 2% goal over medium term
- If these views supported by incoming data, Fed will likley to begin to moderate pace of bond buying
- Assett purchases not on a pre-set course, pace of buying contingent on Fed’s economic outlook
- Fed will take efficacy and costs of bond buying into account
- Rates may stay near zero for considerable time after bond buys end, perhaps well after unemployment falls below 6.5%, so long as inflation remains well behaved
- Since September meeting financial markets now more consistent with Fed’s forward guidance on rate hikes
I had this speech scheduled for 0000GMT, as did every source I’ve seen … maybe I just got an early leak LOL (joke).
Nothing of surprise in his dovish comments – though is it just me or does he seem to be more forthright in his views now the end of his chairmanship is within sight?
Link to full text;
Chairman Ben S. Bernanke
At the National Economists Club Annual Dinner, Herbert Stein Memorial Lecture, Washington, D.C.
November 19, 2013
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