Our Game Time call was that he would pander – he just pandered.
There was no signal of raising rates – explicitly or rhetorically. Bernanke said the Fed is going to “gradually slow the pace” of buying UST Bonds, but that’s just a political plug.
Per Wikipedia: to pander means, “in politics, portrayal of one's views to fit in line with a certain crowd of voters the candidate is attempting to impress.”
Ben Bernanke is pandering to the political pressures associated with getting a core constituency paid: Bankers, Debtors, and Politicians. He is hostage to his own personal history (studying depressions) and those savvy politicians who understand how to use that personal history as a backboard for their compromised agenda.
While, in the long run, this doesn’t end well for those paying the bills (US consumers via inflation and the Chinese holders of US Debt), in the immediate term you should continue to focus on how you can get paid. Just understand the dynamics of US Dollar Devaluation, and capitalize on it.
The US Dollar is down on the day, and everything priced in those dollars is up.