Live blog: Fed Chairman Bernanke’s outlook for the economy
Federal Reserve Chairman Ben S. Bernanke outlines what he expects for U.S. growth in the coming year as the central bank releases its policy statement. He’ll also face TV cameras and reporters during a quarterly news conference.
Reporters, editors and other analysts will live blog what policymakers say -- and what they don’t say. We’ll also follow the stock market’s gyrations and other reactions.
The main question for today: Will Bernanke be able to reassure the world that the central bank has a plan for scaling back its unprecedented efforts to boost the economic recovery. And can he be vague enough about exactly what the plan involves to avoid boxing policymakers into a corner as they try to exit from their stimulus policies without damaging the recovery.
The Fed’s stimulus efforts began nearly five years ago. And, with the economy showing signs of improvement, exactly how will it all wind down? The central bank’s statements and prognosis for economic growth will be very telling.
Even Bernanke’s Jackson Hole answer is unclear. — Matt Yglesias (@mattyglesias) June 19, 2013
Jackson Hole isn’t just another conference. It’s the one hosted by the regional Fed that almost never agrees with anything Bernanke says. — Binyamin Appelbaum (@BCAppelbaum) June 19, 2013
Just once I wish #bernanke would drop the microphone at the end of one of these things, scream “peace out” — Joe Bel Bruno (@JoeBelBruno) June 19, 2013
Benchmark 10-yr Treasury bond yield spiked after Fed meeting, hitting high for 2013, with 2.32% intra-day high — Andrew Tangel (@AndrewTangel) June 19, 2013
Remember the fiscal cliff? Seems stocks fall off one when #Bernanke talks. In an hour, Dow drops 110 -- 0.71% -- and that’s a rebound! — James S. Granelli (@JamesSGranelli) June 19, 2013
Hawks seem to have snatched up that 10-year -- at session highs. #bernanke #fomc #bonds pic.twitter.com/sKOLirsa6R — Joe Bel Bruno (@JoeBelBruno) June 19, 2013
#Bernanke: US monetary policy is trying to help U.S. economy grow, and by extension help the global economy. #fomc #fed — Marla Dickerson (@marladickerson) June 19, 2013
When Bernanke says QE2 for quantitative easing, I think he’s talking about the huge cruise ship, QE2, which could be a metaphor for economy. — AlanaSemuels (@AlanaSemuels) June 19, 2013
Stocks fall about 1% as investors digest Fed and Bernanke statements https://t.co/FNYUkkPpYa — LAT Money & Co. (@latimesmoneyco) June 19, 2013
LSAPS, QE2. MBS. And #Bernanke wonders why the public is confused? #fomc #fed — Marla Dickerson (@marladickerson) June 19, 2013
#Bernanke: We need enough inflation to have room for real interest rates to move. #fomc #fed — Marla Dickerson (@marladickerson) June 19, 2013
$VIX is hanging in there, but check out the nervousness right when #bernanke went on. #fed #vix pic.twitter.com/do350siZCQ — Joe Bel Bruno (@JoeBelBruno) June 19, 2013
I feel for #Bernanke; CNBC has big red downward arrows next to his head showing markets down as he speaks. #fomc #fed — Marla Dickerson (@marladickerson) June 19, 2013
#Bernanke: Fed will slow asset purchases later this year if economy is on track; it not, it won’t. #fomc #fed — Marla Dickerson (@marladickerson) June 19, 2013
#Bernanke: Major change in govt role in buying MBS could change structure of mortgage market. #fomc #fed — Marla Dickerson (@marladickerson) June 19, 2013
What’s next for #Bernanke? Coming this fall, on a television screen near you, Ben Bernanke IS .... Papa Smurf. https://t.co/vsaaMZj4QT — AlanaSemuels (@AlanaSemuels) June 19, 2013
#Bernanke defending his plans to skip Jackson Hole conference, won’t say whether he will step down #fomc #fed — Andrew Tangel (@AndrewTangel) June 19, 2013
#Bernanke:Says Fannie and Freddie are the mortgage-backed security market for now. #fomc #fed — Marla Dickerson (@marladickerson) June 19, 2013
Bernanke sums up the message of the day: “We are determined to be as clear as we can.” — Binyamin Appelbaum (@BCAppelbaum) June 19, 2013
This is what Ben wants to say...#bernanke #fomc pic.twitter.com/lPdWoKPFHl — Joe Bel Bruno (@JoeBelBruno) June 19, 2013
#Bernanke a litle more insistent than usual about not commenting at all on his #Fed future, which could mean something is up. — Jim Puzzanghera (@JimPuzzanghera) June 19, 2013
Dow, S&P;, treasury yields all down during #Bernanke’s talk. #fomc #fed — Marla Dickerson (@marladickerson) June 19, 2013
#Bernanke: Our policies are tied to how the outlook evolves; if the economy does not improve..we will provide support. #fomc #fed — Marla Dickerson (@marladickerson) June 19, 2013
#Bernanke: Fed is determined to avoid inflation that’s too high or too low. #fomc #fed — Marla Dickerson (@marladickerson) June 19, 2013
More transportation analogies from Bernanke -- ending stimulus is like landing safely on an aircraft carrier. — Jim Puzzanghera (@JimPuzzanghera) June 19, 2013
#Bernanke: Stopping asset purchases won’t end the stimulus; govt will hold the securities. #fomc #fed — Marla Dickerson (@marladickerson) June 19, 2013
And the Dow Jones industrial average nearing losses of 90ish points. Will #Bernanke un-spook investors? #fomc #fed — Andrew Tangel (@AndrewTangel) June 19, 2013
#Bernanke: 6.5% unemployment rate “is a threshold, not a trigger” for deciding on interest rate hike. #fomc #fed — Marla Dickerson (@marladickerson) June 19, 2013
#Bernanke ducks question over his future. Who’s gonna ask the aggressive follow-up? #fomc #fed — Andrew Tangel (@AndrewTangel) June 19, 2013
“If interest rates go up for the right reasons….that’s a good thing. That’s not a bad thing,” Bernanke said. — Jim Puzzanghera (@JimPuzzanghera) June 19, 2013
Bernanke says interest rate increase is partly due to more optimism about the economy and anticipation of a Fed pullback. — Jim Puzzanghera (@JimPuzzanghera) June 19, 2013
#Bernanke: housing market finally helping recovery, and boosting state and local govts, but “main drag” is federal fiscal polcy #fomc #fed — Andrew Tangel (@AndrewTangel) June 19, 2013
#Bernanke’s voice has been pretty shaky. He’s had more water moments than Marco Rubio. #fomc #fed — Marla Dickerson (@marladickerson) June 19, 2013
#bernanke should be writing for our @latimesautos blog: “We are talking about lifting our foot off gas pedal, not about applying brakes” — Joe Bel Bruno (@JoeBelBruno) June 19, 2013
#Bernanke reminds that Fed always can eventually slow bond purchases -- or increase them -- given economic conditions. — James S. Granelli (@JamesSGranelli) June 19, 2013
But Bernanke says its like easing the accelerator in a car, not hitting the brakes. — Jim Puzzanghera (@JimPuzzanghera) June 19, 2013
If economy keeps growing as it is, Fed could begin tapering bond purchases later this year and end by mid 2014. — Jim Puzzanghera (@JimPuzzanghera) June 19, 2013
Stocks parelosses as #Bernanke speaks, then deepen losses, with Dow back down nearly 70 points. Make that 49. Jitters continue... — Andrew Tangel (@AndrewTangel) June 19, 2013
Bwhahaha RT @markgongloff Bernanke demonstrates how one reaches for a water bottle during a live address. — Joe Bel Bruno (@JoeBelBruno) June 19, 2013
Fed officials are reviewing their 2011 principles for scaling back stimulus, #bernanke says. — Jim Puzzanghera (@JimPuzzanghera) June 19, 2013
Gross + Gundlach stay on same side of boat: Buy long-term Treasuries. So far, mkt ignoring them: 10-yr T-note jumps to 2.27% vs 2.18% Tues. — Tom Petruno (@tpetruno) June 19, 2013
What word needs to come out of #bernanke’s mouth that will trigger selloff? Rally? Place your bets. $djia down 70. #fed — Joe Bel Bruno (@JoeBelBruno) June 19, 2013
#Bernanke says economy still grwogin moderately notwithstanding the strong fiscal headwinds from Washington. — Jim Puzzanghera (@JimPuzzanghera) June 19, 2013
Let the camera clicking begin — Jim Puzzanghera (@JimPuzzanghera) June 19, 2013
Fed statement by the numbers: 49 new words 20 deleted words = 29 words longer. FED STATEMENT INFLATION!!!! — Justin Wolfers (@justinwolfers) June 19, 2013
The world is waiting on the bearded guy in the suit to speak. George Zimmer, that is. @menswearhouse #bernanke #fomc #fed — Marla Dickerson (@marladickerson) June 19, 2013
Here’s how to watch #Bernanke’s quarterly press conference: https://t.co/Buu5ZPvgzl — Joe Bel Bruno (@JoeBelBruno) June 19, 2013
But markets likely will key on new language that downside risks to the economic and labor market outlook have diminished since the fall. — Jim Puzzanghera (@JimPuzzanghera) June 19, 2013
Oddity in Fed’s statement -- growth projections are slightly lower this year but unemployment rate is forecast to improve. — Jim Puzzanghera (@JimPuzzanghera) June 19, 2013
#Fed #FOMC #Bernanke Read the Fed’s statement here. https://t.co/h5zIzqKd6x — James S. Granelli (@JamesSGranelli) June 19, 2013
“Waiting for Godot” is what @AndrewSchiff calls a potential #fed change in policy. — Joe Bel Bruno (@JoeBelBruno) June 19, 2013
Fed doesn’t flinch on stimulus. #Fed #FOMC #Bernanke It expects jobless rate to fall a bit faster; economic growth to slow a tad. — James S. Granelli (@JamesSGranelli) June 19, 2013
More upbeat FOMC statement signal taper time growing closer. Weak inflation is a wild card, and no clarity yet on timing of taper. — Michael Derby (@michaelsderby) June 19, 2013
#Fed’s hint to Washington: “fiscal policy is restraining economic growth” #FOMC #Bernanke — Andrew Tangel (@AndrewTangel) June 19, 2013
Markets struggling to make sense of Fed statement. Employment good, growth lukewarm. $DJIA down 55 points #fed #bernanke — Joe Bel Bruno (@JoeBelBruno) June 19, 2013
Key change in Fed statement: “downside risks to the outlook for the economy & the labor market as having diminished since the fall.” — Justin Wolfers (@justinwolfers) June 19, 2013
Here’s where you can get the Fed statement: https://t.co/Ky5rM2esCe #FOMC — Joe Bel Bruno (@JoeBelBruno) June 19, 2013
#Fed says labor market conditions have shown further improvement in recent months, but unemployment rate remains elevated. — Donna Borak (@donnaborak) June 19, 2013
Fed holds steady on interest rates and bond buying program. — Jim Puzzanghera (@JimPuzzanghera) June 19, 2013
FOMC point/counterpoint coming from Bullard and George. — agnes crane (@agnestcrane) June 19, 2013
15 of 19 FOMC members see rates at or below 0.25% through end of 2015, 10 thru end of 2015 — David Wessel (@davidmwessel) June 19, 2013
$DJIA holding steady ahead of Fed. Get ready for the trader chaos in the next few minutes. #fomc #bernanke — Joe Bel Bruno (@JoeBelBruno) June 19, 2013
Why does #Bernanke get to sit at pressers? RT @JimPuzzanghera Awaiting Bernanke’s arrival at the Fed’s custom-made news conference desk — Andrew Tangel (@AndrewTangel) June 19, 2013
Awaiting Bernanke’s arrival at the Fed’s custom-made news conference desk in downtown DC . #bernanke #fomc #fed pic.twitter.com/UPKuBGBLWB — Jim Puzzanghera (@JimPuzzanghera) June 19, 2013
Why doesn’t Wall Street turn to psychics to divine #Bernanke’s QE plans? https://t.co/g2rWAbCdyu #fomc #fed — Andrew Tangel (@AndrewTangel) June 19, 2013
Why doesn’t Wall Street turn to psychics to divine #Bernanke’s QE plans? https://t.co/g2rWAbCdyu #fomc #fed — Andrew Tangel (@AndrewTangel) June 19, 2013
It’s over for low borrowing rates. https://t.co/Qv9wMSiADK. — James S. Granelli (@JamesSGranelli) June 19, 2013
Just released secret NSA recording of last FOMC meeting: “What should we do? I don’t know. We are just making this stuff up as we go along” — Joe Saluzzi (@JoeSaluzzi) June 7, 2013
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