FXstreet.com (San Francisco) - Ben Bernanke has disappointed market after he didn't provide explicit hints on further measures or possibilities of QE3. Dollar has been hurt and risk aversion is on the table. Ben Bernanke said that "nontraditional policies are relatively more difficult to apply, at least given the present state of our knowledge."
The Fed has said that previous programs have been effective and there are not plans to rule out more asset purchases. "Bernanke provides strong justification for past actions but fails to deliver on future QE3 signals," points Lien in his twitter account.
Fed's chairman also commented that they will provide accommodation as needed, But there is "little evidence Fed policy fueling financial imbalances," Ben pointed. "Bernanke doesn't provide explicit hints on new steps, QE3," commented Mauricio Carrillo From FXstreet.com in his Twitter account, "but he says unconventional measures are difficult to apply. ERGO: QE3 not now."
"Labor market is grave concern," but "Inflation is close to the 2.0% target," and past QE worked to support recovery. Fed is doubting "structural changes account for high unemployment," "Bernanke talks up past QE actions. Didn't say explicitly that more to come but said big boost in QE may reduce confidence in exit," states Lien.
Anyway, Bernanke affirmed that QE1 and QE3 "boosted growth by 3% and added 2 million jobs." But the chairman commented that economic situation is "far from satisfactory."
On the other hand, Valeria Bednarik from FXstreet.com believes that "QE3 is still on the table despite no clear hints were vented out. Market is unsure on how to take the news, as dollar geared higher, yet remains unable to follow trough."
"Gold bounced form an intraday low of 1647 back to 1660 area in a few minutes, limiting the greenback, while stocks struggle to remain in green," Bednarik concluded.
Meanwhile, Bernanke also send a message for European leaders: "I urge our European colleagues to press ahead with policy initiatives to resolve the crisis".
The Fed has said that previous programs have been effective and there are not plans to rule out more asset purchases. "Bernanke provides strong justification for past actions but fails to deliver on future QE3 signals," points Lien in his twitter account.
Fed's chairman also commented that they will provide accommodation as needed, But there is "little evidence Fed policy fueling financial imbalances," Ben pointed. "Bernanke doesn't provide explicit hints on new steps, QE3," commented Mauricio Carrillo From FXstreet.com in his Twitter account, "but he says unconventional measures are difficult to apply. ERGO: QE3 not now."
"Labor market is grave concern," but "Inflation is close to the 2.0% target," and past QE worked to support recovery. Fed is doubting "structural changes account for high unemployment," "Bernanke talks up past QE actions. Didn't say explicitly that more to come but said big boost in QE may reduce confidence in exit," states Lien.
Anyway, Bernanke affirmed that QE1 and QE3 "boosted growth by 3% and added 2 million jobs." But the chairman commented that economic situation is "far from satisfactory."
On the other hand, Valeria Bednarik from FXstreet.com believes that "QE3 is still on the table despite no clear hints were vented out. Market is unsure on how to take the news, as dollar geared higher, yet remains unable to follow trough."
"Gold bounced form an intraday low of 1647 back to 1660 area in a few minutes, limiting the greenback, while stocks struggle to remain in green," Bednarik concluded.
Meanwhile, Bernanke also send a message for European leaders: "I urge our European colleagues to press ahead with policy initiatives to resolve the crisis".
