From the UK Gaurdian: What did the chairman of the Federal Reserve say in Jackson Hole? According to much of the reaction, Ben Bernanke said the "Fed stands by to boost US growth" (FT), or that the "Fed is ready to prop up economy" (NYT) or even that the "Fed stands ready to support recovery" (WSJ).In other news, a man was bitten by a dog. And by that I mean: the reverse would actually be news.
Yes, Bernanke said the Fed would act if the economic outlook deteriorated further, or if there were signs of deflation. He doesn't appear to think that either of those events are likely to occur, especially the deflation, but if they do, the Fed will do stuff. Which is exactly what you'd expect a modern central bank governor to say....read on
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