27 Jun 2013
Fed Lockhart says markets misread Bernanke
FXstreet.com (Córdoba) - Markets seem to have misunderstood Fed's Chairman Bernanke regarding slowing the bank's bond-buying program, according to Dennis Lockhart Atlanta Fed President.
According to Lockhart, Fed's bond-buying programs remain data dependent and policy will have to remain highly accommodative for some time. He sees rates rising some time in 2015.
"I don't want to be too cute about a serious matter, but to make an analogy, it seems to me he [Bernanke] said we'll use the patch, and use it flexibly, and some in the markets reacted as if he said 'cold turkey'," Lockhart said on Thursday.
According to Lockhart, Fed's bond-buying programs remain data dependent and policy will have to remain highly accommodative for some time. He sees rates rising some time in 2015.
"I don't want to be too cute about a serious matter, but to make an analogy, it seems to me he [Bernanke] said we'll use the patch, and use it flexibly, and some in the markets reacted as if he said 'cold turkey'," Lockhart said on Thursday.