• Sees ‘good news’ on US growth
  • ‘We do have a long way to go’ on economy
  • ‘Far too early to declare victory’ on recovery
  • Sees need to be cautious in sustaining recovery
  • The comments are from an ABC interview to be shown later
  • Gas prices unlikely to stall recovery but could hit growth
  • Fed was too optimistic early in recovery, needs to be ‘realistic’
  • Important not to be complacent on health of recovery
  • Fed does not take any options off the table
  • Fed must be ready to respond to how economy evolves
  • Unemployment may not fall much if economy continues at 2.0-2.5% growth

Bernanke is making a strong case for US dollar shorts and gold longs.