As often happens, when Federal Reserve Chairman Ben Bernanke speaks, the stock market drifts south, as happened yesterday when he faced the business press following the year’s last meeting of the Federal Open Market Committee, observed Grumpy Editor.
The Dow Jones Industrial Average erased an 81-point rally earlier in the day to close down 2.99 points at 13,245.45.
It marked the end of a five-day rally.
Bernanke spoke 12 minutes following the FOMC meeting, then went into detailed answers to media questions for an hour.
The Q&A session started with the Dow up 42 points. The average drifted lower as the questions continued seeking input on the central bank’s policy and what lies ahead.
Also in the air was uncertainly, along with worries, on the looming “fiscal cliff.”
As for inflation, Bernanke said it “remains well-controlled.”
He added the Fed plans to keep key short-term rates near zero until the unemployment rate --- which he sees elevated until late 2015 --- reaches 6.5 percent or less, down from the current 7.7 percent.
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