First comments from Bernanke
Here are the points the Fed’s Chairman Ben Bernanke outlined ahead of its testimony to the Congress:
- The Fed may taper bond purchases in 2013 and stop QE around the middle of 2014.
- As asset purchases depend on economic and financial developments, they are ‘by no means’ on a preset course.
- Bond buying could be reduced at a faster pace, slower pace, or even increased for a time depending on the outlook.
- According to the FOMC, risks to the economy reduced since last autumn, labor market conditions are gradually improving.
- Sees highly accommodative policy in foreseeable future
There isn’t much of news so far, so no reasons to buy USD.