So, Bernanke spoke at the Keynesian Central Planning Club of Washington D.C. yesterday...
He basically did more of what we’ve come to expect from him (no December taper... Change the goal posts on tapering targets etc). Surprise, surprise. The Dollar is down again this morning (FYI - it's down -1% on the US Dollar Index since Yellen spoke last week.)
Bernanke thinks the “surest path to economic recovery” is to do more.
He’s sure about that.
That’s the problem.
Incidentally, after failing right at its $81.39 Hedgeye TREND line on “Yellen Day,” it will be interesting to see if the USD can bounce to another lower-high from here. I think those buying dollars in hopes of a December taper are going to be as wrong as those who bought into the idea that “Yellen will be more hawkish than you think."
She’s the Mother of all Doves. Deal with it.
(Editor's note: This is an excerpt from Hedgye morning research. To learn more about our products click here.)