US Fed Confirms most definitely going to do something…

The much anticipated Congressional testimony by Bernanke last night maintained the ‘want to if we can’ rhetoric.  Whilst reaffirming they want to start tapering QE late this year and end entirely by mid 2014, he then again stressed they would only do so if growth was in line with the committee’s forecast and that QE could remain or be increased if that did not happen.  That forecast sees 2% inflation and 6.5% unemployment… they have a LONG way to go on the latter and he recognised Congress’s mandated spending cuts would negatively affect this for some time yet.  So they are definitely going to either taper or not.  All clear now?