So we listened to the Ben Bernanke press conference. (guardian)
He isn't of course telling us the whole truth but he was quite candid. The problem is it was like a Big Mac. You felt good at the time but afterwards you were still hungry. You see it is not that clear whether the Fed has a strategy or not.
So there will be more monetary support but less easing to contain inflation. This is like saying "The bed offers great support and is as hard as a rock so won't give much but will ease your back pain." Uh?
So the printing presses will be on standby and will be printing at the same time.
The buying and distorting of the US yield curve will stop in June and then the Fed will start using rates again to curb inflation. Is that what he said?
I always thought the role of the Fed was to support the USD. It appears not.
So we may or may not have inflation, rising unemployment, more QE, more put option sales, a weaker dollar but whatever, Bernanke can always blame commodity prices which are ....based in USD.
Sanatander, like Spain, bailed out by the Brazilians (bloomberg)
UK is turning Japanese (telegraph)
Bernanke to replace Oprah.