by Ambrose Evans-Pritchard, The Telegraph:
Be very careful.
Ben Bernanke has not retreated from monetary tightening. The Fed is still on track to start tapering bond purchases as soon as September. There has been no volte-face.
The plunge in the US dollar since Ben Bernanke made his confused comments last night – and the $40 surge in the price of gold – is likely to be reversed in short order.
He did of course say that “highly accommodative monetary policy for the foreseeable future is what’s needed in the US economy”, and he is certainly right about that.
The broad U6 measure of US unemployment jumped in June from 13.8pc to 14.3pc. Stephen Lewis from Monuments says this is biggest increase since 2009. The number working part-time – by compulsion, not choice – rose by 322,000 in a single month.
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