Over years, Central Bank head Ben Bernanke’s testimonies have become a steady source of profits for me and subscribers to The Arora Report . Bernanke’s testimony from this morning before Congress’ Joint Economic Committee was no different. The race was on to read and interpret the text before the others to generate short-term profits. This is a simple technique that anybody can easily use to make money.
This time, Bernanke made it easy. The crux of his testimony was in the second paragraph,
“Economic growth has continued at a moderate rate so far this year. Real gross domestic product (GDP) rose at an annual rate of about 2 percent in the first quarter after increasing at a 3 percent pace in the fourth quarter of 2011. Growth last quarter was supported by further gains in private domestic demand, which more than offset a drag from a decline in government spending.”
My quick translation was no quantitative easing or QE. Next step was to quickly figure out what Bernanke was saying about inflation. Bernanke again made it real simple this time,
“With regard to inflation, large increases in energy prices earlier this year caused the price index for personal consumption expenditures to rise at an annual rate of about 3 percent over the first three months of this year. However, oil prices and retail gasoline prices have since retraced those earlier increases. In any case, increases in the prices of oil or other commodities are unlikely to result in persistent increases in overall inflation so long as household and business expectations of future price changes remain stable….’ Read More at MarketWatch
