Michael Hughes

Why Did the Market Act Like Bernanke Said Something New?

Perhaps, Bernanke is anticipating the effect that proposed immigration reform will have on inflation. Unlike our president and congress, he may be anticipating the additional wage, benefit, and tax consequentces of legally employing more than 12 million people. We might also see legal costs rise since companies currently hiring employees under the table may now have to justify in court the hiring of foreign labor over US citizens.