Wall Street Reacts to Bernanke Speech
Web Editor, "Mad Money"
There's plenty of reaction to the speech today by U.S. Federal Reserve Chief Ben Bernanke. He gave his outlook on the U.S. economy. As we wrote earlier--Bernanke said that "core inflation remains uncomfortably high." He also said that aside from the housing and automotive sectors--economic activity is expanding at a solid pace. And in the business sector--capital investment is growing at a healthy rate as well.
So-- here's some thoughts from Wall Street to the speech--as seen on Power Lunch:
“It’s their job to be concerned about inflation,” says Nariman Behravesh, Global Wright’s chief economist. “They have to be ahead of the curve rather than behind the curve.”
Gary Pollack – of Deutsche Bank Private Wealth Management – said the speech was a message to the bond market that the road to favorable monetary policy can sometimes be a bumpy one.
Both Behravesh and Pollack agree the Fed will be hawkish in the near term – but they expect an interest rate ease in the first half of 2007.
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