Chairman Bernanke’s Congressional Testimony

On July 22nd, 2010, posted in: Articles of Interest by Christopher Hunt

Tags: , , , , ,

Comments Off

The Chairman of the Federal Reserve provides some reassurances to the markets in his statement to both houses of Congress this week.  Points of note: Fed expects 3.5-4.5% GDP growth in 2011 and 2012, 7-7.5% unemployment by the end of 2012, and an initial rebalancing of the Fed’s Treasury and Agency portfolio by reinvesting proceeds from principal paydowns in mortgages into Treasuries to reduce the current 2:1 MBS-Treasury ratio.  He also leaves the door open to further Fed assistance if European markets worsen.

Comments are closed.