Bernanke: Taper and rate hikes two very different things

|By:, SA News Editor

"The FOMC’s decision to modestly reduce the pace of asset purchases at its December meeting did not indicate any diminution of its commitment to maintain a highly accommodative monetary policy for as long as needed," says Ben Bernanke in what could be termed his farewell speech.

"The combination of financial healing, greater balance in the housing market, less fiscal restraint, and, of course, continued monetary policy accommodation bodes well for U.S. economic growth in coming quarters ... But, of course, if the experience of the past few years teaches us anything, it is that we should be cautious in our forecasts.” Indeed.