Wake-Up Call for Investors: More Pain to Come This Year98 views 2013-07-29 21:03 Tags: additional regarding blank couple target
A couple of weeks ago, Federal Reserve chairman Ben Bernanke testified in front of the House Financial Services Committee and the Senate Banking Committee, adding additional information regarding the central bank’s current monetary policy stance.
There are several things you should be aware of that the Fed chairman stated and what they all mean for the markets.
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Bernanke reiterated that the central bank would only reduce asset purchases if the economy continues improving. He then stated that the Federal Reserve might even expand its monetary policy program if conditions warrant such an action.
Now recall that during the last Federal Reserve meeting on June 18–19, simply mentioning the monetary policy program by the Federal Reserve—its purchasing of $85.0 billion per month in fixed income assets—caused a serious sell-off in both the stock and bond markets.
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