This Week, Bernanke Will Remind Congress That He's Not Independent, And Won't Do Anything Do Jeopardize All Their Spending

ben bernanke

This past week, Ben Bernanke introduced the Fed’s first move towards a tightening normalization of credit conditions, when the discount rate was raised by 25 bps.

But have no fear!

This week Bernanke talks to Congress, and the expectation from the likes of Bloomberg and others, is that he’ll promise them that no “real” rate hikes are in the cards anytime soon.

Despite the ostensibly independent (ha!) nature of the Fed, this week will see its chief promise Congress that he won’t do anything to counteract their monster spending ambitions, and will continue to make money available to everyone at low cost.

Should be good news for markets… unless he even utters the words “exit strategy,” at which point you should really be careful.

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