The “Asian Ambush” and some surprise words from Ben Bernanke could have stock and gold investors in for some pre-weekend hurt.
The dollar surged 1.2% overnight, following a surprise intervention from Asian governments to weaken their currencies, and some fresh comments from Bernanke that loose money can’t go on forever, and that once the economy improves, the tightening will have to commence.
Bloomberg: “My colleagues at the Federal Reserve and I believe that accommodative policies will likely be warranted for an extended period,” Bernanke said at a Board of Governors conference yesterday in Washington, echoing language from last month’s meeting of the Federal Open Market Committee. “At some point, however, as economic recovery takes hold, we will need to tighten monetary policy to prevent the emergence of an inflation problem down the road.”
S&P futures are headed lower, reversing the course they set all week. But amazingly, impressively gold is hitting yet another record, $1061.