...and piling off my last post regarding that infernal phrase "all else being equal", Bernanke now chimes in about what is presumably the "official" stance the Fed assigns to the current imbroglio. It is most unfortunate that he is, was, and will continue to be wrong about the effects of assets swaps in the manifestation of QE bond purchases and its REAL effects on the REAL economy.
Federal Reserve Chairman Ben S. Bernanke said additional monetary stimulus may be warranted because inflation is too low and unemployment is too high.
“There would appear -- all else being equal -- to be a case for further action,” Bernanke said today in the text of remarks given at a Boston Fed conference. He said the central bank could expand asset purchases or change the language in its statement, while saying “nonconventional policies have costs and limitations that must be taken into account in judging whether and how aggressively they should be used.”
He didn’t offer new details on how the Fed would undertake those strategies or give assurances the central bank will act at its Nov. 2-3 meeting.