Bernanke Has Gone Rogue

Whenever the Federal Reserve does anything, the markets react.

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Bruce

"The Federal Reserve is in damage-control mode. Last week’s announcement by Bernanke unilaterally scrapped the official unemployment rate target of the Federal Open Market Committee (FOMC), which sets monetary policy. I reported on this on June 25.

He raised the target from 6.5% to 7%. This indicated that the FOMC has decided that it could stop inflating earlier than previously reported. This is what Bernanke said: QE3 may “taper off” this year.

His announcement sank stock markets around the world. It created a panic-driven crisis based on the idea that the FOMC might stop the printing presses early.

Mortgage rates are up by a third from last December, when the Federal Reserve adopted QE3. The FOMC said at the time that it did this to keep mortgage rates down. The policy has blown up in the FED’s face."