So after swooning earlier in the day, stocks are back up.
Initially they fell after Ben Bernanke’s testimony about the “exit strategy” was released on the Fed’s website (the snow prevented him from actually delivering the remarks).
But nothing in the testimony should have freaked investors out. Bernanke made it crystal clear that he would do nothing to tighten any time soon.
In other words, if it isn’t clear, you’re not even allowed to discuss raising rates, even if what you say in that discussion is that you’re not going to do that for a long time. The market just doesn’t want to hear anything about that.
Imagine how ugly things would be if, oh, he actually had an exit plan gameplan.
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