Ricardo Arroja

Bernanke Comments Reinforce Stable Interest Rates View

The next move in rates is down - soon rather than later. Frankly, it seems obvious to me that Bernanke is the most dovish US central banker since that chap in the 70's (sorry, but I don't recall his name). But then again, where's inflation coming from? In my view, it's a China related phenomena that translates into higher commodity prices. Period. There's no inflation coming from US wages - those are being kept under a lid due to foreign job outsourcing. Inflation is just coming from energy prices. But currently, crude oil is almost 20% below its all time high, natural gas is 65% below its all time higher after Katrina/Rita last year, sugar (despite all the ethanol buzz) is almost 40% below this year's earlier relative high....Bernanke is right to be dovish. However, Bernanke is not right to be the stock market cheerleader - that would be something outrageous for a central banker. Chairman Bernanke: please give us back M3 figures.