- Highly accommodative monetary policy meets both Fed’s goals (employment/growth)
- Fall in unemployment more rapid than expected but job market remains far from normal
- Gas prices likely to push up inflation
- Especially important to evaluate economic data
- Critical challenges remain for euro zone
A touch more hawkish than I expected as Bernanke finally acknowledges improved labor market. QE3 fears are receding a bit and Treasury yields are rising modestly.
Looks as though the market went into the testimony short of dollars (as usual when he speaks) and is now covering some of those shorts).
