Why Higher Inflation Destroys Jobs

THE Federal Open Market Committee will conclude its two-day April meeting today, and Chairman Ben Bernanke will give a press conference this afternoon. Hopes for new stimulative action by the Fed are low, despite some disconcerting recent data points.

John Browne submits:Last week, in the second in a series of less-than-impressive press conferences, Fed Chairman Ben Bernanke offered market observers little hope that any additional quantitative easing programs are on the horizon. The Chairman continues to cling to the position that the economy is improving (with the recent "soft patch" attributable to external forces) to the extent that additional Fed support will be unnecessary.

YESTERDAY, all eyes turned to Fed Chairman Ben Bernanke as he gave a speech on the American economic outlook at a time when that outlook seems particularly uncertain. In my view, Mr Bernanke didn't say anything too surprising, although markets dipped a bit on the speech, perhaps because they were expecting a little more of a hint that additional easing was possible. A few key points stood out.

The Federal Reserve chairman's first regular press conference in the US central bank's 98-year history was supposed to make more news when it was announced than when it actually took place. And so it proved. There was nothing much to rile the markets in Ben Bernanke's comments - on the dollar, interest rates or the US deficit.

Expect a lot of gentle reassurances from the Fed this week. U.S. Federal Reserve Chairman Ben Bernanke and his team will make a rate announcement on Wednesday and provide their latest insight into the health of the U.S. economy. Investors will be watching closely for any hints of whether the Fed will ease its US$80-billion a month bond buying program, also known as QE3.

Tim Duy: More Uncertainty?, by Tim Duy: I was reading this Business Insider report on an analyst's mea culpa on a bad trade when this jumped out: