Ben Bernanke, FED chairman and president in 2013

Bernanke statement drives US stocks up

on July 11 | in All, Economy, Markets, US | by | with No Comments

The FED chairman Ben Bernanke has spoken this Wednesday night and as we know, every time such an influential person speaks out, the markets listen very carefully. Bernanke affirmed that what the Unites States need for the near future is an accommodative monetary policy. In other words, the American economist has sent a signal that the FED should continue to actively support the US economy. Before this speech came to light last night, there were already several clear indications coming from previous FED reunions, on which most of the administrators were leaning towards a consensus about not cutting any support to the economy, at least not before they started seeing some positive results and growth in the employment market.

The markets were expected to react this Thursday and all major US stock indices have already risen significantly by the time we’re writing this article. The Dow Jones rose +0.89%, the NASDAQ climbed +1.34%, while the S&P 500 got lifted around +1.05%. This all happens in a day where some unemployment figures came to surface in the United States, as the jobless claims rose 16.000 since last week, resulting in a new 2-month high of 360.000. The forecasts failed miserably in that regard, since analysts expected this number to close around 340.000.

With that in mind, it becomes easier to understand why the FED stated that they pretend to continue backing the US economy. The unemployment rate issue remains being a key factor in determining this organism’s monetary policy and that’s not going to change anytime soon…

Investors and brookers about to panic in stock markets

The US FED building wallpaper, in New York, in 2013

Sources: jornaldenegocios.pt / marketwatch.com

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