Bernanke Goes to The Hill
Posted at 1:45 p.m. on Feb. 25
Federal Reserve Chairman Ben Bernanke is scheduled to testify before the Senate Banking Committee and House Financial Services Committee this week. Reuters looks at the “sensitive task” for the central bank chief as the Fed lays the groundwork for an eventual shift away from monetary stimulus.
“Bernanke is not expected to change his dovish tone this week, despite mounting concerns over the size of the balance sheet. But his role over the next year, or longer if he stays in office, will be critical as he begins to navigate a long and delicate process of policy tightening, assuming the recovery takes hold as Fed officials hope.”
“There could be trouble if investors misinterpret when the asset purchase program will end. An abrupt selloff in bonds for example could send longer-term rates soaring, derailing the gradual reversal for which the Fed hopes.”
