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20 May 2014
Bernanke behind the recent US curve steepening? - Danske Bank
FXStreet (Edinburgh) -Sverre Holbek, Senior Analyst at Danske Bank, believes the recent steepening of the US curve would be sue to comments by ex-Chairman Bernanke.
Key Quotes
“According to a Reuters story based on unnamed sources, Ben Bernanke has been quite blunt about the outlook for rates to stay low in comments he made at a series of private investor dinners”.
“Notably, the former Fed Chairman said that he would not expect the Fed Funds rate to rise back towards its 4% long-term average during his lifetime”.
“He also said that the Fed aims to hit its 2% inflation target at all times, and that it is not necessarily a ceiling”.
“The Reuters story was out late Friday, and as Ben Bernanke is still viewed as holding unique insight in the Fed, these remarks likely contributed to the curve steepening seen in the US yesterday”.
Key Quotes
“According to a Reuters story based on unnamed sources, Ben Bernanke has been quite blunt about the outlook for rates to stay low in comments he made at a series of private investor dinners”.
“Notably, the former Fed Chairman said that he would not expect the Fed Funds rate to rise back towards its 4% long-term average during his lifetime”.
“He also said that the Fed aims to hit its 2% inflation target at all times, and that it is not necessarily a ceiling”.
“The Reuters story was out late Friday, and as Ben Bernanke is still viewed as holding unique insight in the Fed, these remarks likely contributed to the curve steepening seen in the US yesterday”.