Analysts find Bernanke speech disappointing
Posted Aug 26, 2011 11:33 am.
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Calling it disappointing, analysts say Ben Bernanke’s speech Friday morning at an annual economic conference contained a whole lot of nothing.
The chairman proposed no new steps by the Federal Reserve to boost the U.S. economy, while hinting that Congress may need to act to stimulate hiring and growth.
He believes while record-low rates will promote growth over time, the weak economy will still require help in the short run.
Chief Investment Officer with BMO Harris Bank, Jack Ablin, says there wasn’t much Bernanke could have done.
“Everytime over the last 30 years when the U.S. economy got the sniffles, we had the Federal Reserve standing by with tissues and the Central Government standing by with cold medicine,” says Ablin.
While the chairman admitted he still has tools at his disposal, Ablin says politicians in Washington need to step up to the plate.
“But given the contention that’s going on and the mudslinging, I think it’s a really, really difficult task right now,” he says.
He adds investors are facing two fronts, high earnings and volatile downturns, in the market and it’s too soon to tell which one will win out.
