Posts filed under “Federal Reserve”
Fed Chair Ben S. Bernanke, in his prepared comments, observes:
"With the economy expanding at a solid pace, resource utilization rising, cost
pressures increasing, and short-term interest rates still relatively low, the
Federal Open Market Committee (FOMC) over the course of 2005 continued the
process of removing monetary policy accommodation, raising the federal funds
rate 2 percentage points in eight increments of 25 basis points each. At its
meeting on January 31 of this year, the FOMC raised the federal funds rate
another 1/4 percentage point, bringing its level to 4-1/2 percent."
On another note, how goddamned annoying is that CNBC sound effect? Jesus Christ, what are you people 4 years old? Its the Fed Chair, not a f*%$# video game.
I guess that means I am hungry and cranky. Time for a lunch break soon . . .
UPDATE: February 15, 2005 4:05pm
I was just looking over some of the Fed Chief’s testimony. The Capital
Surplus discussion made me giggle. Everytime I hear the "Savings Glut"
phrase, I cannot help but be reminded of Mr. Montgomery C. Burns (of
"Oh, meltdown. it’s one of those annoying "buzzwords." We prefer to call it an unrequested fission surplus."
Testimony of Chairman Ben S. Bernanke
Semiannual Monetary Policy Report to the Congress
Before the Committee on Financial Services, U.S. House of Representatives
February 15, 2006
Category: Federal Reserve
This is the article that the Greenspan quote came from that popped the market today; I don’t know how accurate it is (holographic image?) but
Gold price riding high on fear of terrorism, says Greenspan
Leo Lewis, Tokyo
February 09, 2006
"ALAN Greenspan, who stepped
down last week as chairman of the US Federal Reserve after 18 1/2 years, has
blamed the threat of terrorism for the high gold price, in his first private
sector speech since being let off the leash of officialdom.
members of his audience of international investors – watching a holographic
image in Tokyo as he spoke in New York – Greenspan said the high cost of gold
did not reflect inflation or the strength of commodities, but rather a fear
among investors of a major geopolitical conflict. There were people who believed
that a nuclear weapon could be detonated within five years, the former American
central bank supremo said.
The low probability of such an event occurring would not necessarily avert a
spike in the gold price, he added.
Greenspan went on to discuss a range of topics, including the problems
created by a lack of investment in refining capacity by the oil industry. He
said this failure by the oil majors meant that the era of cheap energy was
almost surely over.
The former Fed chairman is also said to have indulged in a moment of
self-criticism over the central bank’s failure to prevent the market bubble in
the late 1990s.
That may explain Gold’s $20 whackage yesterday, but what about all the rest of the metals and commodities?
Also, if you missed this, you MUST read it:
GREENSPAN SENDS MIXED SIGNALS IN FIRST DAY AT HOME
Former Fed Chief’s Inscrutable Statements Baffle Wife
Its a hoot!
and on the chance the article disappears, I’ll archive it after the jump . . .