It’s Fed day in the US, and in the afternoon, Ben Bernanke will be holding a press conference.
He’s widely expected to say that the gas pedal remains press down for the foreseeable future.
Ben White at POLITICO passes this along in today’s Morning Money newsletter:
HFE’s Jim O’Sullivan: “We expect the message on Fed policy, including QE3, will remain ‘full speed ahead’ in the FOMC statement and the chairman’s press conference today. Officials will have to acknowledge a pick-up in growth in Q … and they may tweak the wording on QE3 slightly, but the end result will likely be no deviation from current policies and no hint that a scaling down in the pace of easing is imminent. The main reason for continued easing: The unemployment rate remains ‘elevated.'”
This is key.
While there’s a lot of talk about when we’ll finally see Fexit (a Fed exit from its unorthodox easing measures) Bernanke doesn’t want to indulge in that. Even if he were thinking in his head about exiting, he wants to send the economy the message that if anything he’ll overshoot, and let inflation go hot in order to get jobs down.
Eventually he may tighten, but for now the signaling should be that he’s still going full throttle, even as the company seems to be turning.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.