Fed Meeting: What's on Bernanke's Mind?

By: Jill Schlesinger
Topics: Financial Decoder

When the interest rate decision is announced today, the Federal Open Market Committee will most likely leave its current monetary policy unchanged and say that "economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period."

(AP Photo/Ross D. Franklin)

In other words, just because Chairman Bernanke said that the recession is "technically over," that doesn't mean that consumers are feeling too swell or that Fed policy will shift. Fed governors have told us as much in their public statements and appearances. Just because we have backed away from the edge of disaster doesn't mean that a sustained recovery is baked in the cake.

Here's what I think is on Bernanke's mind right now:
• Sure the worst is over, but if I don't get this next part right, I'm finished
• When should we stop buying all of those mortgage-backed securities? It's helped stabilize the housing market, but we can't do it forever.
• Econ data is moving in the right direction, but with employment still declining and real incomes stagnate, when will consumers join the recovery?
• I wish the inflation hawks would shut up already. I know that real rates will rise eventually as recovery takes firmer hold, but right now, I'm still worried about deflation - did anyone notice that prices are down 1.5% from a year ago?
• This stock market rally is freaking me out - glad that all my money is in a blind trust so I don't have to think about it too much
• Love that blogger Mark Thoma - wants the Fed to oversee the entire financial system
• I'm so psyched that the boss gave me another term!

(CBS)

This post originally appeared The Financial Decoder blog on CBS MoneyWatch.com. Jill Schlesinger is the Editor-at-Large for CBS MoneyWatch.com. Prior to the launch of MoneyWatch, she was the Chief Investment Officer for an independent investment advisory firm. In her infancy, she was an options trader on the Commodities Exchange of New York.

Jill Schlesinger
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Jill Schlesinger, CFP®, is the Editor-at-Large for CBS MoneyWatch. She covers the economy, markets, investing or anything else with a dollar sign. Prior to the launch of MoneyWatch in 2009, Jill was the chief investment officer for an independent investment advisory firm. In her infancy, she was an options trader on the Commodities Exchange of New York.
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by robparisblog September 24, 2009 10:20 AM EDT: Why I don't believe a word Bernanke says:
http://robparis.blogspot.com/2009/09/select-quotes-from-great-depression.html; Reply to this comment


by hologram5 September 23, 2009 4:05 PM EDT: I want some of the stuff this guy is smoking because it has to be bangin'. This guy is sooo high he has no clue what is going on in reality. The recession is far from being over. Far...
As long as the jobless claims are in the double digits, and our GDP is at an all time low, we will NEVER recover. Bring the jobs and manufacturing back to the USA and we'll start the road to recovery. Until then, the Fed reserve and the Fed Gov clowns will continue to blow smoke up our butts until it comes out our ears.; Reply to this comment


by bubbadubba September 23, 2009 2:55 PM EDT: I just read what is on Bernanke's mind.
He has taken away the interest caps on mortgages and now the banks are still going to get money at 0% and loan it at high mortgage rates for a 700%+ or more profit per year on that money.
The banks own our country.
American Suckers.; Reply to this comment


by bubbadubba September 23, 2009 2:20 PM EDT: "Fed Meeting: What?s on Bernanke's Mind?"

He has a mind? When did that happen?; Reply to this comment


by get_down September 23, 2009 1:29 PM EDT: Question - "What?s on Bernanke's Mind"?
Answer - Absolutely clueless!; Reply to this comment


by mzilikazi-2009 September 23, 2009 1:13 PM EDT: It certainly looks as though Chairman Bernanke was put into his position by whoever really pulls the strings for nothing more than the expressed purspose of destroying the U.S. dollar over a protracted period of time. At this point it really doesn't matter what FOMC statements say as actions and facts speak so much louder than empthy rhetoric. By now the same can be said of any statements regarding economics coming from the Treasury or even the President in my opinion. Sure, the Fed's primary dealers can sell off a little oil here and ther to give the illusion of inflation being under control but until they stop gaming forex and commodities like a bunch of drunk cattle rustlers at a Wild West saloon real stability is unlikely to return. This kind of bologna makes running a business almost impossible unless you are a Wall Street insider and continues to wreck lives throughout the world. Where is the accountability?; Reply to this comment