Courtesy of John Nyaradi
The Fed Has Spoken (Hint, hint, wink, wink)
The big day in Jackson Hole brought Dr. Bernanke with an optimistic long term outlook for the economy and the announcement that his Fed meeting in September will be two whole days instead of one to give time for a fuller discussion of the tools available to the Fed should economic conditions worsen.
The markets liked it with oil rising, along with the major indexes capping an impressive week with the Dow (DIA) up 3.9% for the week and the NASDAQ (QQQ) gaining 5.5%.
So Dr. Bernanke hinted at some sort of new stimulus in September and that he has “the tools” he needs.
One can only wonder what those tools might be, however, the hint of action was enough to offset today’s downward revision in GDP to 1%, an accounting error from contraction and the potential onset of a double dip recession.
So things remain sketchy, at best, in my opinion, as we head into the next to last “official” weekend of summer.
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