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The "Fed is Still Trying to Push Down Rates"
The "Fed is Still Trying to Push Down Rates" according to the working headline on WSJ Fedwatcher Hilsenrath's article (subscription) recapping Bernanke's speech yesterday. He emphasized Bernanke's Q&A response that the Fed will "continue to do additional asset purchases, buy MBS, and whatever actions are appropriate" as evidence of this fact that the markets have already taken onboard. He also noted Bernanke's warning that even with a fiscal deal there will be a drag on the economy of some kind. It was also pretty clear that Bernanke remained dissatisfied with the level of the jobless rate, which he thought was 2.0-2.5% higher than need be. Hilsenrath also picked up on the warning that there was little the Fed could do to avoid a recession in the event that Congress failed to make a deal. :