Traders Speculating (Praying) That Bernanke Will Announce New Stimulus Scheme This Week In Jackson Hole

bernankeI’m here to help!

It has been a year since Ben Bernanke threw his last big bone to Wall Street: The announcement at last year’s Jackson Hole schmooze-fest that the Fed had a number of options at its disposal to stimulate the economy.(Translation: We’re launching QE2).

Bernanke’s speaking at this year’s Jackson Hole this Friday. Wall Street is speculating—or at least praying—that the Fed Chairman will say something similar this year.

This seems a reasonable bet. Bernanke tends to freak out whenever markets tank, and the last month of ~15% declines has wiped $8 trillion off the value of global stock markets.

On the other hand, QE2 was a bust, and Bernanke has already recently promised that the Fed will keep short-term interest rates at zero until 2013. And inflation has been ticking up. So maybe the Fed chairman will hold firm.

More at MarketWatch >

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.