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Pastimes : The Justa and Lars Honors Bob Brinker Investment Club Thread -- Ignore unavailable to you. Want to Upgrade?

To: Wally Mastroly who wrote (2736)	7/24/2003 11:47:10 PM
From: augieboo	Read Replies (2) \| Respond to of 10065

Wally, they want me to sign up to receive spam for the remainder of my life in order to read that article. Was it perhaps about the latest speech by Bernanke? If so, I prefer to read the Fed's speeches in their original language, rather than having them filtered for me by some moronic "reporter." (If not, read on anyway, as this gets good.) Here is a link to the Fed where they publish the complete texts of all Fed Governors' speeches on the same day they are given. federalreserve.gov And pasted in below are excerpts from Bernanke's latest plus a link to the speech in its entirety. It's a tougher read than some fluff piece from CNBS (or whatever) but at least you'll come away knowing what the man actually said. JMDO, etc., augie --------------------------------------------------------- Remarks by Governor Ben S. Bernanke Before the Economics Roundtable, University of California, San Diego, La Jolla, California July 23, 2003 An Unwelcome Fall in Inflation? federalreserve.gov To my mind, the central import of the May 6 statement is that the Fed stands ready and able to resist further declines in inflation; and--if inflation does fall further--to ensure that the decline does not impede the recovery in output and employment. ... Implications for Monetary Policy ... ... as the May 6 statement made clear, for the foreseeable future the risk of further declines in inflation from an already low level outweighs the risk of a resurgence of inflation. Hence, monetary ease appears to be indicated for a considerable period. ... ... Keeping the federal funds rate target at or near its current level for an extended period may be sufficient. Alternatively, ... we could certainly cut the rate from where it is now. In my view, ... we should be willing to cut the funds rate to zero, should that prove necessary to provide the required support to the economy. Should the funds rate approach zero, the question will arise again about so-called nontraditional monetary policy measures. ... my understanding of these measures and my confidence in their success have been greatly enhanced since (November of 2002). ... I see the first stages of a "nontraditional" campaign as focused on lowering longer-term interest rates. The two principal components of that campaign would be a commitment by the FOMC to keep short-term yields at a very low level for an extended period ... together with a set of concrete measures to give weight to that commitment. Such measures might include, among others, increased purchases of longer-term government bonds by the Fed, an announced program of oversupplying bank reserves, term lending through the discount window at very low rates, and the issuance of options to borrow from the Fed at low rates. ... A crucial element of the (May 6) statement was an implicit commitment about future monetary policy; namely, a strong indication that, so long as a substantial fall in inflation remains a risk, monetary policy will maintain an easy stance.