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Bernanke Clarifies Stimulus Talk, Markets Tumble

Fed isn't ready to take action soon

By Sarah Whitmire, Newser Staff

Posted Jul 14, 2011 1:50 PM CDT

(Newser) – Wall Street semantics: Yesterday, Ben Bernanke appeared before Congress and mentioned the word "stimulus." His remarks were widely interpreted to mean that the Fed was poised to take action to bolster the economy, and the markets rose in response. Today, Bernanke resumed testimony and made clear the Fed wasn't considering stimulus measures anytime soon, reports AP. Markets, which had been up 90 points, immediately tumbled, and the Dow was down about 50 points in its final hour.

In this June 27 photo, traders work on the floor at the New York Stock Exchange. (Seth Wenig)

Federal Reserve Chairman Ben Bernanke testifies on Capitol Hill Wednesday. (AP Photo/Carolyn Kaster)

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COMMENTS

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Showing 3 of 3 comments

tangeri

Jul 15, 2011 10:58 AM CDT

Wall St. traders are playing a confidence game with insane amounts of real money. They're shafting us, handing us the bill, and demanding they don't pay taxes. These people don't build anything. They don't design or make anything. They don't cook or drive for anyone. They don't educate children or take care of the sick or elderly. The don't even entertain us.

LoginsSuck

Jul 14, 2011 3:09 PM CDT

I am guessing he said "stimulus" accidentally because he had some choice stock to sell.

vendetta

Jul 14, 2011 3:09 PM CDT

::facepalm:: Bernanke makes over $191,300 dollars a year. Im sure he was thinking about this on the way out to his limo.

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Bernanke Clarifies Stimulus Talk, Markets Tumble

Fed isn't ready to take action soon

OTHER STORIES ON OUR RADAR

Ben Bernanke • stock market • Wall Street • stimulus funds

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