Saturday, August 25, 2012

'2016: Obama'sThe Heat Is on Bernanke—but Will He Say Anything?

Fed Chairman Ben Bernanke’s speech in Jackson Hole is long on anticipation but will probably come up short on news.
The Fed chairman speaks at 10 a.m. ET Friday at the St. Louis Fed’s annual symposium in Wyoming, and traders are hoping for some new insight into what the Federal Reserve is thinking, including whether and when the Fed might take further easing steps. However, economists and Fed watchers don’t expect Bernanke to say much new, as the Fed continues to weigh incoming economic data ahead of its Sept. 12 meeting.
“I don’t think Bernanke is going to be signaling what the Fed is going to do. lt’s too close and it’s too close a call for him to be signaling anything,” said Bruce Kasman, chief economist at JPMorgan.
There is a busy calendar of economic news in the week ahead, but the Bernanke speech trumps all else. The Fed beige book on the economy, second quarter GDP revisions and consumer confidence are among the reports expected. Retailers will release chain store sales Thursday, giving an early look at the back-to-school shopping season.
The Republican convention will also be underway, and Wall Street will be watching to see how well the week goes for GOP presidential candidate Mitt Romney, favored over President Obama by many in the markets but slightly behind Obama in the polls. 

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