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Bernanke says .. .nothing much.

Not that much was expected except for in a few corners of speculator land. Essentially we kick the can until Sep 20th when the FOMC meets. The big news today was the next Fed meeting will now be 2 days instead of 1 ... I assume so they can discuss, in full, all options.

The market dropped about 7-8 S&P points on the news as Pavlov dogs did not get what they wanted, but essentially now the bulls can wave "QE3" or "Operation Twist" for another 3 weeks. As I said earlier this week, the higher the market goes, the more open we are to disappointment come Friday.

Link for full speech here. Main points is he expects inflation to remain at 2% or below (which is a key for more easing), and he wants the federal government to act with more stimuli. I believe this is the 4th year in a row of stimuli ... but please give us more.

Continue to look for Jon Hilsenrath (of the WSJ) leaks in the coming weeks. If they decide to move in September, they will leak to him. My long held call for QE by winter still holds firm (but maybe Operation Twist first).

Prepare to have all the same conversation we've just had the past two weeks repeat a few weeks from now (yawn).

As for the market, it's all white noise until we exit this range of 1120ish to 1175 (stretch goal 1190).

Source: Bernanke Says ...