Bernanke's speech in Jackson Hole

Those whose expectations were low relative to the speech by Federal Reserve chairman, Ben Bernanke, held in Jackson Hole, were not disappointed. Those who sought a recovery in the words of Bernanke are disappointed, as when the same Fed chairman last year has provided the basis for further purchases by the Fed, what became the QE2, which led to 600 billion dollars purchases of Treasury securities.

This year, the Fed chief said in essence that the temporary problems are less to blame than previously thought. The structural problems, particularly in the area of housing, preventing monetary policy to have its usual effect on the economy.

Bernanke mentioned the word "tax" 15 times as much "money". The Fed chief said that most of the economic policies that sustain robust economic growth in the long run are beyond the powers of the central bank. But the Fed chief did not specify other economic initiatives, which should be revealed next month. The proposals could include a cut in taxes and spending for public works.

Meanwhile, the FOMC will consider all options available to him in a meeting of the expanded two-day, on 20 and 21 September in order to give full practical implementation issues still outstanding.

In reality there is much to talk about, including the idea of a lengthening of maturities of the securities portfolio of the Fed, in an attempt to bring down interest rates in the long term. What the Fed is planning to do does not depend on the length of the next FOMC meeting, but the current economy. Bernanke admitted that growth has remained significantly behind the expectations that the Fed did itself.

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