Photo: Chris Yarzab via Flickr
Today’s PPI report — which came in hotter than expectations — is probably the first nail in the coffin of the idea that Ben Bernanke will announce something big when he speaks at Jackson Hole later this month.The idea that this year would see an encore to last year was already looking unlikely.
The data has not been sufficiently deflationary enough, and the mood has changed a lot. There were three dissenters when the Fed recently announced that it would keep rates low through the middle of 2013, and move that’s not even that radical.
Speaking yesterday, St. Louis Fed chief James Bullard, who has actually been quite dovish, said that the Fed had not signaled QE3 was coming in its latest report.
Bottom line; The economy and the market may still enjoy a Bernanke put, but the idea of imminent action seems unlikely unless things totally collapse.