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Wall Street Reacts to Bernanke Speech

Tuesday, 28 Nov 2006 | 2:29 PM ET

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.

For the full story:

Bernanke Analysis
A discussion about Fed Chmn. Ben Bernanke's speech in New York, with Gary Pollack, Deutsche Bank Managing Dir.; Nariman Behravesh, Global Insight Chief Economist; and CNBC's Bill Griffeth.


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