Mohamed A. El-Erian: What Bernanke Is Trying To Tell The Markets

Ben Bernanke (Photo credit: trackrecord)

Yesterday the market was very attentive to what Bernanke could say. There was great interest, as communicated publicly. But more importantly is what you might say "between lines". Try to identify what their message beyond their words. 


With an understandable short-term mentality dominating, we should expect markets to continue to bundle what central bankers and others feel should be more differentiated. Federal Reserve Chairman Bernanke traveled to Capitol Hill this morning for his periodic appearance before the Joint Economic Committee of Congress.


He delivered a careful and balanced view of the economy (a gradual healing in the context of a still-muted outlook growth and jobs), re-iterated the improved banking and financial conditions at home (stressing the major additions to bank capital), and referred to the strains in Europe (acknowledging that they act as a drag on the US economy). The likely upshot is continued volatility ...Continue to read.

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