All eyes will be on Ben Bernanke as he speaks at the Kansas City Fed’s annual symposium in Jackson Hole, Wyoming.Most economists don’t expect much.
Art Cashin, UBS Financial Services director of NYSE floor operations spoke with some traders to get their take. Here’s what they think:
Bernanke Without An Empty Chair – Around mid-day yesterday, we sent some friends an outline of what many on the floor were guessing Bernanke might say.
- He’ll review the previous Q’s and Operation Twist.
- He’ll note what they did and didn’t do. He’ll defend them against challenges that they just raised oil and commodity prices.
- He’ll challenge both sides in Washington on the total lack of fiscal action.
- He may outline some possible alternative monetary actions but may hold them while assessing events in Europe, unemployment, etc., etc.
- Markets may be initially disappointed but will be reassured that the “held-back” QE’s are at the ready.
“If Bernanke doesn’t say anything dramatic, Wall Street could be a Ghost Town by 11:15,” said Cashin.