The unintentional Seinfeld reference that made us giggle today - Bernanke's move on the U.S. economy is to stop short, emulating great central bank economists and driver's seat molesters. Bernanke didn't offer any inkling that rates would be cut at the September 18 FOMC meeting, disappointing Wall Streeters convinced that their whining was driving the Fed's actions.
Many economists think the Fed will cut rates, but are arguing over the extent of the rate cut. Bernanke provided little clarity. More, from the Journal:
Comments Monday by San Francisco Fed President Janet Yellen and Fed Governor Frederic Mishkin seemed to make the case for a half-point reduction, Fed watchers said. In contrast, remarks by Atlanta Fed President Dennis Lockhart and Dallas Fed President Richard Fisher seemed to lean toward a quarter percentage point cut, analysts said. Wall Street was thus looking to Mr. Bernanke to break the tie, which he didn't do. Mr. Bernanke's speech is the last scheduled by a Fed official before the Sept. 18 FOMC meeting, meaning investors are likely to confront that meeting with much more uncertainty than they're used to having.
Bernanke Speech Offers No Rate Clues [Wall Street Journal]