Don’t expect any bombshell announcements from the Fed chair at tomorrow’s KC Fed symposium at Jackson Hole, Wyoming. The Journal clearly illustrated this week that the FOMC is unusually divided on the need for further accommodation (or the impact, if any) and while recent data has only worsened, don’t expect Bernanke to do much more than reiterate the options the Fed has at its disposal that he outlined before Congress last month.
The buck could get a lift out of the speech, sort of a relief trade, if you will, by him not tipping his hand on further quantitative ease ahead.
If he arrives in a helicopter though, all bets are off…
