Friday, July 19, 2013

Short Bonds: It’s Best Trade in Market Right Now, Says Hoenig

FOMC Chairman Ben Bernanke said in his testimony Wednesday that he believed financial markets were finally getting his message. Specifically that the Fed will continue to stimulate the economy as long as the unemployment rate remains above 6.5% and inflation is under 2%.

It's nothing Bernanke hasn't said in every speech, comment, press conference or statement for about the last year. The reason Bernanke feels compelled to make the point again is that the bond market has started doing it's own thing despite, or perhaps in spite of Bernanke's commitment to keep rates at or near zero percent.  (more)

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