"If we were to tighten policy, the economy would tank," says Ben Bernanke wrapping up day one of...
"If we were to tighten policy, the economy would tank," says Ben Bernanke wrapping up day one of his Humphrey Hawkins testimony (tomorrow, the Senate). John Hilsenrath notes the striking change from the June FOMC policy statement - which said downside risks had diminished - to today's testimony which clearly highlighted the downside. "A dovish tilt towards easier money." Hilsenrath and FTAlphaville also both note another dovish tilt, the re-emergence of the "D" word - deflation.
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