[lbo-talk] Wrong-Way Ben?

Marvin Gandall marvgandall at videotron.ca
Tue May 2 19:29:13 PDT 2006



> CNBC report seen denting Bernanke's credibility
>
> By Tim Ahmann and Mark Felsenthal
>
> 1 hour, 25 minutes ago
>
> WASHINGTON (Reuters) - Fledgling Federal Reserve Chairman Ben Bernanke may
> have a hard time recouping his credibility after off-the-cuff remarks over
> the weekend made it onto the airwaves on Monday, roiling financial
> markets.
>
> CNBC anchor Maria Bartiromo waited until late afternoon Monday to report
> that Bernanke had told her at a journalists' dinner on Saturday that
> traders had misread his congressional testimony last week.
>
[...] =============================== Maybe, but I'm not wholly convinced Bernanke just slipped up; he and others at the Fed may have wanted to correct the impression that the Fed was done tightening after after the dollar began sliding sharply last week. The leak to Bartiromo temporarily halted the slide, although downward pressure resumed today. Managing an orderly USD devaluation without triggering a run and a crisis is going to be a delicate operation as this incident, trivial on its face, again confirms.



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