Bernanke’s economic outlook is as it was at the FOMC but he indicates that the super-low discount rate may go up before long. That should not be viewed as a tightening, he says.

Here is the full testimony.

Looks like normalization is what he’s after.

Last week the St. Louis Fed’s Bullard suggested that the Fed should sell assets before raising rates. Bernanke takes the opposite tack, saying they will raise rates on reserves before selling assets.

EUR/USD is falling on the discount rate hike talk, though it is really a technical matter.