Bernanke May Seek Consensus on Easing

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Johnny Oxygen
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Bernanke May Seek Consensus on Easing

Federal Reserve Chairman Ben S. Bernanke’s decision to extend next month’s policy meeting to two days stoked speculation the extra time may allow him to forge a stronger consensus on monetary easing.

Bernanke, in a speech yesterday at the Fed’s annual forum in Jackson Hole, Wyoming, said adding a second day to the September gathering would “allow a fuller discussion” of the slowing economy and the central bank’s possible response. He said the Fed still has tools to boost growth, without specifying what they were or whether they would be deployed.

“The move to a two-day meeting means he’ll work to build consensus” after confronting the most dissent during his tenure last month, Diane Swonk, chief economist at Chicago-based Mesirow Financial Inc., which oversees about $57 billion in assets, said in an interview at Jackson Hole. “They will end up with QE3, but probably not in September,” she said, referring to a third round of bond purchases, also known as quantitative easing. “They will edge closer to it in the September statement.”

...The next Federal Open Market Committee session, previously scheduled to start and end Sept. 20, will now conclude Sept. 21. The change adds a fifth two-day meeting to this year’s calendar, leaving three one-day sessions in March, August and December.

I wonder what the 'tools' are? Maybe its a wrench that acts like a hammer but looks like a vise - or maybe its just a printing press.

So is he just buying time so the economy can tank some more and spread panic making people accept more money/debt printing?

I still assert that the Bernanke has chronic diarreha. Maybe the "2-days" will give him more time to visit the men's room.

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