Reply #64: Bernanke's bluntness seems to assure a big cut [View All]

[UpInArms]

http://www.reuters.com/article/bondsNews/idUSN1018778720080110

CHICAGO (Reuters) - Weeks ahead of a key policy-setting meeting, Federal Reserve Chairman Ben Bernanke on Thursday left little doubt the central bank will slash interest rates to bolster the sagging economy,

Speaking in Washington, Bernanke was unexpectedly blunt about the U.S. economy's worsening outlook, while adding that the Fed is "not currently" forecasting a recession.

He assured markets that the Fed stands ready to take "substantive additional action as needed" to support growth and would "act in a decisive and timely manner."

"Bernanke's comments will be regarded as unequivocally dovish," said Marc Chandler, senior currency strategist at Brown Brothers Harriman in New York.

So much for the poker face that some pundits had expected from Bernanke ahead of scheduled testimony on the economy to the House of Representatives Budget Committee next Thursday and with a series of key economic numbers set for release.

Traders responded decisively, as indicated by the short-term interest rate futures that measure market expectations on Fed policy.

...more...

See! That "bad" news is really GOOD news!