Federal Reserve Chairman Ben S. Bernanke, who has been reported to be coming back this week to have a prospect of a 2010 speech, has warned that the other series of quantitative easing would most likely be a disappointment for investors, who are expecting something new from Bernanke, which might be a provocation.
It is being believed that Bernanke won’t be delivering the same speech at Fed’s annual symposium in Jackson Hole, Wyoming; he did on Aug. 31. Economists including Michael Feroli and James O’Sullivan asserted that he would be addressing the investors with a new speech at the third round of bond buying.
Members of the Federal Open Market Committee have scheduled to hold a meeting next on September 12-13. For the time being, they are having a close look at the matter of unemployment and certain other major issues. However, they are yet confused whether to urge expansion or not.
The US economy is saved from being affected by the debt crisis, which are currently being faced by 17 countries, due to the decision taken up by politicians in Washington and in Europe.
“I don’t think Bernanke wants to make Jackson Hole into a policy-signaling event,” preferring to “reserve that for the FOMC meetings”, said Feroli, Chief U. S. Economist at JPMorgan Chase & Co. (JPM) in New York.
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