Bernanke Makes Dismal Economic Forecast, Unconvincing Promises That The Fed Can Do More


Markets watched the biggest event of the day with baited breath—Federal Reserve Chairman Ben Bernanke gave his testimony in front of the Senate Banking Committee at 10 AM ET.

Analysts were looking for any sign that Bernanke had altered his views on the wisdom of more quantitative easing, after extending the so-called “Operation Twist” last month.

At that time, the Fed said it will continue to sell short-dated securities and purchase long-dated securities, in order to push down the cost of long-term lending. The next meeting of the Fed’s Open Market Committee will be held on July 31-August 1.

Also expect a handful of questions on LIBOR and some commentary on fiscal policy.

We’ll live-blogged the event below.

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