In this morning’s Breakfast With Dave newsletter, analyst Dave Rosenberg talks about Ben Bernanke’s speech yesterday at the NY Economic Club. He likens its speech to that of Alan Greenspan in 1992:
Rosenberg: We are talking about the latest employment report, which had far too many non- confirmations … like the one above. In yesterday’s Economics Club speech in Washington, the Fed Chairman stressed that “the economy confronts some formidable headwinds that seem likely to keep the pace of expansion moderate … we still have some way to go before we can be assured that the recovery will be self-sustaining.”
The last time we heard the term “headwinds” was from Alan Greenspan in the summer of ’92 when the economy was out of technical recession but not yet into a complete recovery, and the Fed waited 20 months to tighten rates! Quick, buy me back those Eurodollar futures!!
Mr. Bernanke received some key support from Bill Dudley who heads up the New York Fed, and stated that the economy faces near term “downward pressure” and that “mostly because some of the current sources of strength are temporary” (ie. fiscal stimulus and the arithmetic boost from reduced inventory de-stocking).
Essentially, Americans will have to continue waiting for the job market to recover if this post-recession vibe is anything like that of the Greenspan era.