Bernanke Vows To Keep The Pedal to The Metal
Nicholas Santiago | May 22, 2013 11:22AM ET
Federal Reserve Chairman Ben Bernanke is beginning to testify before the Joint Economic Committee. In his opening remarks, the head of the central bank signaled that he will continue to keep the current quantitative easing program in place. Traders and investors can easily see the decline in the U.S. Dollar Index after his comments were released.
Substantial Risk
Chairman Bernanke warned that reducing the Federal Reserve's efforts to keep borrowing rates low would carry a substantial risk of slowing or ending the economic recovery. That means that he will keep interest rates at zero percent and continue to buy $85 billion a month worth of mortgage-backed securities and U.S. Treasuries for the foreseeable future.
Large financial stocks are soaring higher on the news. Leading stocks such as J.P. Morgan Chase & Co. (BLK ) have all moved sharply higher leading the rally in the major stock indexes today.
Nicholas Santiago
www.InTheMoneyStocks.com
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