Maybe it’s all Ben Bernanke’s fault. At the end of April the Fed chairman told congress that the Fed might need to take a break from upping the rate of interest, and to give the recent hikes more time to have an impact before deciding on the next move. As a result, markets celebrated those apparently soft words, and shares rose.
But a few days later, Mr Bernanke was reported as telling a US TV presenter that “It’s worrisome that people would look at me as dovish and not necessarily an aggressive inflation fighter.” And, when these views were heard, shares fell. Yesterday, Ben did the honourable thing, and told Congress he was wrong to make those comments. “That episode was a lapse of judgment on my part,” he said.
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