Salient to Investors:
Caroline Baum writes:
- The Wall Street Journal’s Jon Hilsenrath is widely viewed as Bernanke’s unofficial spokesman.
- Bernanke was crystal clear when he communicated the Fed’s objectives.
- The rise in interest rates can be easily overwhelmed by better earnings as a result of stronger growth, so if the Fed’s optimistic outlook is correct, stocks should make a complete recovery.
- Expectations about the overnight rate are the key determinant in setting long-term bond rates.
- If the Fed really plans to wait for full employment before it starts to lift the funds rate, then Bernanke will need a lot more than clarity to prevent the outcome from being an unmitigated disaster.
Read the full article at http://www.bloomberg.com/news/2013-06-26/bernanke-was-clear-fed-s-crystal-ball-is-cloudy.html
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