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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